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DIT WERK TERUGBEZORGEN UITERLIJK OP:
2 3HE119?S
KONINKLIJK NEDERLANDS INSTiTUUT
VAN REGISTERACCOUNTANTS
BIBLIOTHEEK
FEE/IFAC 199S International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
CHANGES TO THE PROGRAMME
There have been some unavoidable, last minute changes to the
conference programme. These changes, which are not shown in the
conference binder, are indicated below against the session to which
they relate,
INTERNAL - EXTERNAL AUDIT/HIGH TECH AUDIT (Afternoon)
For reasons of space, both parts of this session will now take place at
the headquarters of Koninklijke Ahold NV, in Zaandam. Part 2 of this
session, which was to take place in the offices of Deloitte & Touche in
Amsterdam, will now take place at Koninklijke Ahold NV.
SMALL AND MEDIUM-SIZED ENTERPRISES (Afternoon)
Mr. Ad Geelhoed, one of the scheduled speakers for this session, is
unfortunately unable to attend. His place will be taken by Mr. I. D.
(Bas) Sepers who is deputy Director-General of the Directorate
General for Structural Policy Affairs at the Dutch Ministry for
Economic Affairs.
ERRATUM
The timetable for the evening programme given in the conference
binder (in the section "Conference Programme") is incorrect. The
closing reception is from 19.00hrs to 20.00hrs. The candlelight dinner
cruise is from 20.30hrs to 23.00hrs. The conference ends at
23.00hrs as stated in the binder.
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Agars P.
Harrison S.B.M.
Kok P.P.L.
Kok L.A
Kropp J.F.
Lucy J.J.
McGregor G.
McKenna M.
Mellor T.
Micallef F.
Sharpe M.J.
Jasch C.
Samer H.
Traar E.
Abdus S.
Ahmad J.U.
Badrul Ahsan
Das S.K.
Hamid S.A.
Kasem S.
Miah M.I.A.
Behets P.P.
Dierick W.
Dupont G. .,. _.
Gelard C.
Hegarty J.
HuIIe K. van
Joos L.H.
Konings A.C.P.
Leenheer J. de
Locatelli G.
Maagaard Pedersen M.
Moehlig J.K.
Moloney D.
Morlet A.
Olivier H.
Pairoux W.
Parker R.
Slomp S.
KPMG
Inst, for Chartered Accountants
Australian Society of CPAs
Inst, for Chartered Accountants
BHP Co Limited
Australian Society of CPA's
The New South Wales Treasury
Australian Ace. Research Found.
Coopers & Lybrand
Inst, fur Onkolog. Wirts.forsch.
Inst. Osterr. Wirtschaftsprufer
Kmmer Wirtsch.treuhandler Osterr.
Excelsior Corporation LTd
Ahmad, Ahmad & Co.
Inst, of Chartered Ace. of Bangl
S.K. Das & CO. Chartered Ace.
Janata Bank
A. Qasem & Co.
Bangladesh Chem. Ind. Poration
KPMG bedrijfsrevisoren
Euraccounts NV
Bekaert Holding B.V.
F.E.E.
F.E.E.
Europese Commissie
Joos, Waeterloos & Partners - BR
Kraft Jacobs Suchard
Belgian Inst, of Accountants
F.E.E.
F.E.E.
The Belgian Inst, of Accountants
F.E.E.
SPRL A.G.M.
Instituut der Bedrijfsrevisoren
Belgian Inst, of Accountants
DHL Worldwide
IASC/F.E.E.
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Austria
Austria
Austria
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Smitt H.
Stempnierwsky Y.
Timmerman G.M.
Trolliet C.
Troye A.
Vaessen M.
Vandelanotte R.
Werf C.N.J.van der
Biggs K.
Billing R.
Buchanan W.W.
Cowperthwaite G.H.
Denman J.H.
Dodds D.
Fortunato V.
Held P.E.
Hillier D.R.
Hinchey G.
Loughrey C.E.A
Noike D.G.
Precourt J.
Rattray D.W.T.
Rayner M.H.
Scott K.B.
Sylph J.M.
Whiteley S.
Hampl K.
Langer L.
Andersen N.E.
Conrad U.
Hammer-Pedersen K.
Jacobsen J.
Koefoed O.
Roder J.
Vetlov J.
Warberg F.
Herrera J.R.
Lizardo A.
Radwan M.M.
Ilola J.
Smitt & Accountants
Conseil superieur rev. d'entrepr
KPMG Bedrijfsrevisoren
F.E.E.
European Commission
Europese Commissie
Belgian Institute of Accountants
Soc. of Man. Ace. of Can.
Ernst & Y Envir.Services Inc
Canadian Inst, of Chartered Ace.
CICA
Schneider Corporation
Int. Federation of Accountants
Canadian. Inst, of Chart. Ace.
Cert.Gen.Acc.Ass. of Canada
Canadian Inst, of Chart. Ace.
CGA-Canada
CGA-Canada
Auditor General of Canada
Canadian Inst, of Chart. Ace.
CGA-Canada
Can. Inst, of Chartered Ace.
The Society of Mngt. Ace. of CDN
Chamber of Auditors Czech Rep.
Chamber of Auditors of Czech Rep
Foreningen af Statsaut.Revisorer
Forengingen af Statsaut. Revis.
KPMG C. Jespersen
Deloitte & Touche
Foreningen af Statsaut. Revis.
Fedr. des Experts compt. Eur.
Foreningen af Statsaut. Revisor
Coopers & Lybrand
KPMG
KPMG
Egyption Soc. for Ace. & Aud.
Finn. Inst, of Auth. Public.Aec.
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Belgium
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Canada
Czech Republic
Czech Republic
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Denmark
Dominican
Dominican
Egypt
Finland
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Lohi J.
Suomela E.
Anspach J.M.
BonH.
Bonnet-Bernard S.
Briolay C.
Brouwershaven C. van
Cambourg P. de
Cazalet R.L.
Doyle J.L.
Enriquez J.D.
Gengoux C.
Germond B.P.
Gualino R.
Kling D.
Lebas M.
Medina Y.
Philips L.
Richard F.
Ricol R.
Riviere G.
Salustro E.
Schneiter B.
Shand D.
Dörner D.
Fliess W.
Goerdeler R.
Kaminski H.
Kleekamper H.
Marks P.
Ring H.
Constantinou D.
Kollyris E.
Epersjesi F.
Rieb L.
Haraldsson T.
Agarwal K.M.
Kale Y.M.
Deasy N.
Donovan C.W.
Downes M.
KHT-Yhdistys
KHT-Yhdistys
Inst, des Experts-Comptables
Prorevise
Ordre des Experts-Comtables
KPMG Audit
European Space Agency
Mazars
Ordre des Expert-Comptables
Comp. Nat. des Comm. aux Comptes
Org. for econ. coop. + developm.
Comp. Nat. des Comm. aux Comptes
C.N.C.C.
Comp.-Nat. des Comm. aux Comptes
Comp. Nat. des Comm. aux Comptes
Groupe HEC/HEC School of Mgt.
Ordre des Experts-Comptables
ABC International
B.D.A-Deloitte & Touche
Ordre des Experts-Comptables
KPMG Audit
Salustro Reydel
Comp. Nat. des Comm. aux Comptes
O.E.C.D.
Institut der Wirtschaftsprufer
IFAC
KPMG Deutsche Treuhand-Ges.
Inst, der Wirtschaftsprufer
Schitag Ernst & Young D.A.T. AG
Institut der Wirtschaftsprufer
Treuhand und Revisions AG
Moore Stephens
Soma Orkoton Elegton (SOE)
Chamber of Hungarian Auditors
Chamber of Hungarian Auditors
Felag Loggiltra Endurskooenda
Inst, of Chartered Ace. of India
Inst, of Chart. Ace. Ireland
Deloitte & Touche
Bank of Ireland
Finland
Finland
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
France
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Greece
Greece
Hungary
Hungary
Iceland
India
India
Ireland
Ireland
Ireland
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Country
Gannon J.
Hussey R.
Keane T.L.
Siggins E.
Doron D.
Kanne M.
Rotman I.
Aiello I.
Bernoni G.
Borio G.
Callegari E.
Caso A.
Distefano F.
Hinna L.
Kunz E.
Mancinelli L.
Messina G.
Nardini V.
Negretti G.
Operti P.
PicoUi A.
Portaluppi P.
Santorelli W.
Savino L.
Serao F.
Zorzi A.
Fujinuma T.
Fushimi T.
Nakachi H.
Ohashi M.
Sawa E.
Shiratori E.
Yamamoto H.
Bernard G.
Dybman P.
Meeussen L.
Middelhoek A.
Blank W.A.M.
Chew Poon L.
Kwai Choy S.
Hoyos Roldan J.E.
Inst, of Chart. Ace. Ireland
Inst, of Chart. Ace. Ireland
The Inst, of Cert. Public Ace.
Inst, of Cert. Public Accounts
Inst. Cert. Public Ace. Israel
Fahn Kanne & Co
KPMG Braude & Co.
Cons. Naz. Dott. Commercialisti
Cons. Naz. Dott. Commercialisti
Studio Legale - Tributario
Consiglio Nazionale Ragionieri
Studio Caso - Dott.Comm.Sti.Ass.
Consiglio Nazionale Ragionieri
Ernst & Young
Cons.Naz. Dottori Commercialisti
Cons. Naz. Dott. Commercialisti
Cons.Naz. Dottori Commercialisti
Consiglio Nazionale Ragionieri
Consiglio Nazionale Ragionieri
Consiglio Nazionale Ragionieri
CNCD-Italy
KPMG Peat Marwick Fides snc
Consiglio Nazionale Ragionieri
Consiglio Nazionale Ragionieri
Cons.Naz. Dottori Commercialisti
Consiglio Nazionale Ragionieri
The Jap.Inst. of Cert.Public Ace
Science Universtity of Tokyo
Tohmatsu & Co.
The Jap.Inst. of Cert.Public Ace
Japanese Inst.of CertPublic Ace
Int. Accounting Standards Comm.
The Jap.Inst. of Cert.Public Ace
Inst, des Reviseurs d'Entreprise
Euros tat
Kredietbank S.A. Luxembourgeoise
European Court of Auditors
Eastern Produa Malawi Ltd.
Conf. of Asian and Pacific Ace.
Confed. Asian and Pacific Ace.
Price Waterhouse
Ireland
Ireland
Ireland
Ireland
Israel
Israel
Israel
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Luxemburg
Luxemburg
Luxemburg
Luxemburg
Malawi
Malaysia
Malaysia
Mexico
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Sanchez Y Madrid M.
Birrell L.N.
Adriaanse W.J.M.
Aken F. van
Akkermans D.
Allena S.
Baarends R.
Baars H.J.
Baart P.
Bac A.
Bak G.G.M.
Bakker L.B.M.
Ballegooijen R.E. van
Bartholomeus P.H.E.
Bauer J.E.
Bearzatto D.A.
Beest H.W. te
Beurden B.C.J.M. van
Bibbe R.
Bijvoet C.J.
Bindenga A.J.
Blok A.E.R.
Bol C. van den
Bolwerk A.
Booij J.
Boon R.J.M.
Boucke K.E.
Bouman R.R.
Boumen J.L.H.
Bovendeert-Bijl, L.B.
Breukelen J.M.J. van
Broek CA. van den
Bruijn W. de
Bruyn P. de
Buisman J.H.
Burg P. van der
Burggraaff H.
Cafferky J.
Charlanes H.
Chiaradia H.L.
Daele E.J.A.M. van
Coopers & Lybrand
Lindsay Birrell & Associates
AKZO Nobel
VAS; WIK
Chamelion
Rabobank Nederland
VAS
Nederlandse Spoorwegen
Coopers & Lybrand
VB Accountants
KUB
Paardekooper & Hoffman
Coopers & Lybrand
Ministerie van Financien
NIVRA
Zwolsche Algemeene
A'damse Effectenbeurs
Zorgverzekeraar VGZ
VAS; WIK
Moret Ernst & Young
Commissie NIVRA 100
Erasmus Universteit Rotterdam
Coopers & Lybrand
Akzo Nobel N.V.
Deloitte & Touche
Gemeentelijk Accdienst Utrecht
Verbond van Verzekeraars
Min. Soc. Zaken en Werkgelegenh.
Nedlloyd Groep
NIVRA
ABN AMRO
Ministerie van Financien
KPMG
Ministerie van SZW
KPMG
Wickes Pic
VAS; UNEAS
VWG Groep Accountants
AXA Equity «& Law Levensverz. NV
Mexico
Monaco
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Damant D.C.
Dasselaar C.J.E.
Deckers F.
Dieleman A.
Diepen P.J.M. van
Dijk E.J. van
Dijk J.F. van
DixH.
Dohmen R.W.J.M.
Doorgeest M.G.
Drieënhuizen F.
Dubbeld C.
Egeraat P.C.M. van
Elmers P.W.A.
Elissen M.G.P.
Ernste D.E.
Feber H.W. Le
Feijten R.F.C.H
Fernhout A.
File Y.
Fluit, C.J.F. van der
Fransen F.
Frijters R.W.E.
Gameren Th.J. van
Geerling M.M.
Geestman P.H.J.
Gelderloos J.O.
Ginkel M. van
Gortemaker J.C.A.
Graafsma S.L.J.
Greef. P.L.J. de
Greveling G.W.
Griffioen A.
Groot J. de
Haas E.J.F.A. de
Hagedoorn A.
Ham P.J. van der
Hamel J.
Hamelink P.J.
Hark M. ter
Harmzen P.
Credit Suisse Asset Management
St. Toezicht Effektenverkeer
Coopers & Lybrand
Paardekooper & Hoffman
Divisie CRI
ABN AMRO
Coopers & Lybrand
Coopers & Lybrand
Gem. Ace. Dienst Amsterdam
Limperg Inst./Moret E &Young
NIVRA
Ministerie van VROM
Coopers & Lybrand
Douane District Heerlen
ING Groep
Coopers & Lybrand
Moret Ernst & Young
FSV Acc/best.lid NIVRA
VAS; WIK
NIVRA
V.R.I.
Paardekooper & Hoffman
Coopers & Lybrand
RBG Adviesgroep B.V.
Deloitte &. Touche
KPMG
Coopers «& Lybrand
Coopers & Lybrand
KPMG
NIVRA
Deloitte & Touche
KPN
VB Accountants
Price Waterhouse Nederland
Moret Ernst & Young
Min. v. Onderwijs, Cult, en Wet.
ABN AMRO
Ministerie van V.R.O.M.
VAS
AMEV Nederland N.V.
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Hartelman A.J.A.
Hartingsveldt W. van
Hartman W.
Heek J.J.
Hees J. van
Heij J.G.D.
Hengel H.W. van den
Hettinga C.J.
Hibbitt, Ch.J.
Hinten H.J.M.
Hoogendoorn J.D.
Hoolt H.
Hulshoff Pol, W.
Hulst F.W.H.L. van
Hurks P.F.M.
Hunt J. van
lerschot P.J.
Izeboud G.
Jaeger R.O.M de
Jansen J.Th.M.
Jonker, R.A.
Kalkman S.
Kaltenbrunner H.F.
Kamp D.N.J.
Karreman G.H.
Kastelein A.
Keeken C. van
Kenny U.
Kerklaan H.P.A.
Kessler W.
Kleipool F.A.R.N.
Knol D.
Koenen J.J.M.
Kok A.A.M.
Kok W.A.M.
Koningsveld G. van
Kooij R.D. van
Kooijman R.J.
Kooien P.L.C.A.
Koot H.
Kordes F.G.
ABN AMRO
ABN AMRO
NOREA
V.R.I.
Coopers & Lybrand
AccoN accountants- en bel.adv.
N.V. Nederlandse Spoorwegen
Moret Ernst & Young
NIVRA
VB Groep
College van Toezicht Soc. Verz.
AHOLD Vastgoed bv
NIVRA
Inerra bv
Omnyacc Acc./Bel.adviseurs
Paardekooper en Hoffman
Ministerie V.R.O.M.
Coopers & Lybrand
Fortis Nederland
Coopers & Lybrand
NIVRA
KPMG
Resources Planning Consultants
Centraal Beheer
NIVRA
Min. Soc. Zaken en Werkg.
Ned. Participatie Mij. NV
VAS; UNEAS
Min. van Economische Zaken
Gem. AccDienst van Amsterdam
RAETNV
Min. Volksgez., Welzijn en Sport
CZ Groep
Actuarieel Genootschap
KPMG
G. van Koningsveld Consult.
Coll. van Toezicht Soc. Verz.
N.C.M.
HBG, Hollandse Beton Groep nv
AccKantoor mr drs H. Koot RA
NOREA
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Kramer H.
Kreij J. de
Krom J.P.J.
Krouwer R.P.
Laan S.
Laarhoven K.A.J. van
Lam H.J. 't
Leenaars J.
Leeuwen G.A.M.
Leeuwerik H.J.F.
Lindeman P.J.M.
Lint F.J.P.M. van
Loon G.C.J.
Maarschalkerweerd R.
Maas J.
Martinson H.
Meer J.K. van der
Meer D. van der
Meeuwissen A.H.
Meijer W.N.
Meijer C.
Micheels W.H.
Mijer V.L.
Mooij H.
Moonen P.P.C.M.
Muickhuyse C.H.
Nes B. van
Nijsen M.
Noordzij M.W.
O'Doherty E.
Oldenbeuving R.
Ooi M.J.L. van
Overdam R. van
Overmeire A.I.J. van
Pappenheim A.L.
Pasmooij J.
Piet J.
Pieters M.H.
Ploeger P.
Polek L.Ph.
Prikken, L.J.
Deloitte & Touche
Coopers & Lybrand
Deloite & Touche
Paardekooper & Hoffman
Coopers & Lybrand
Coopers & Lybrand
HBG, Hollandse Beton Groep nv
Robeco Groep
Min. van Economische Zaken
Shell Int. Petroleum Mij. bv
ABN AMRO
EnerTel b.v.
KPMG
D.S.M.
Paardekooper & Hoffman
VAS; UNEAS
ABN AMRO
Min. V. Onderwijs, Cult, en Wet.
Deloitte &. Touche
Moret Ernst & Young
SRA
N.V. SDU
Ministerie van VROM
Gem. Accdienst Amsterdam
Muickhuyse & Partners
VB Groep
VAS
VNO
VAS; UNEAS
VAS
Coopers & Lybrand
VAS; WIK
Moret Ernst & Young
Ministerie van VROM
EDP Audit Pool
Deloitte & Touche
Douane District Heerlen
VAS
GAD Amsterdam
NIVRA
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
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Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
- Netherlands
Netherlands
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Ramakers D.
Regoort C.J.
Rietveldt R.P.
Rijn J.M.A. van
Rijsbergen C.
Roest T.
Rooij B.A. de
Rooijen M.J. van
Roost F.
Schellekens W.
Schellekens E.P.
Schilder A.
Schneider C.
Schoevaart M.A.
Sieverdink A.
Slingerland L.
Slot M.C.M.
Sluis CC. van der
Smith K.L.
Sonderen J.S. van
Sorber B.
Spath A.R.
Staa-Oldenhuis H.
Steemers M.
Steenkiste E. van
Stel, M.
Stoele P.
Stroom E. van der
Sureveen J.A.
Swinkels A.
Tan H.K.H.
Taylor N.
Ter Haar R.
Terpstra N.P.
Tiddens L.
Tilburg K. van
Timmermans J.A.G.U.
Timmers M.
Tol R.W. van
Torren M.J. van der
Touw A.L. van der
Wickes Pic
Min. van Economische Zaken
BDO CampsObers
College van Toezicht Soc. Verz.
ABN AMRO
Min. van Buitenlandse Zaken
Coll. van toezicht soc. verz.
VAS; UNEAS
Min. van Buitenlandse Zaken
Moret Ernst & Young
Coopers & LA'oorz. NIVRA
Omnyacc
Wickes Pic
VB Accountants
Coopers & Lybrand
N.C.M.
N.V. Nederlandse Gasunie
Price Waterhouse
Algemene Rekenkamer
Ministerie van Financien
KPN
NV Nederlandse Spoorwegen
KPMG
VAS; UNEAS
NIVRA
Paul Th. Stoele Adviseur & Ace.
Rabobank Nederland
Coll.van Toezicht Soc. Verz.
VAS
Gem. Ace. dienst Amsterdam
Wickes Plc
Divisie CRI
Bennis BPR
KPMG
GAK-Amsterdam
KPMG Accountants
Arthur Anderden
Heineken Nederland bv
De Nederlandsche Bank NV
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Country
Tuinsma L.F.G.
Vaessen M.G.
Veenstra R.H.
Veerman P.J.
Veldhoven J.A. van
Ven A.C.N. van de
Verheesen M.
Verhulst L.J.
Verkaik D.C.
Verschuur A.S.P.
Verstege P.D.
Verstegen G.
Vogelaar A.W.
Volten H.
Voormeulen R.
Vos-In 't Veld J.
Vries J. de
Vries G.A.
Vries B.M. de
Vries J. de
Vries J.M.P. de
Vriesendorp D.
Vroegop P.A.E.
Vroom R.E.A.
Waardenburg F.
Waardenburg J.
Wagelaar J.
Wallage P.
Weisfelt M.E.W.
Wel F. van der
Wennink P.T.F.M.
Werring, A.J.M.
Wersch A. van
Wert H.O.C.M. de
Wensten E.H.W.
Weustenraad E.A.H.
Wielink, A.E.H. van
Wijck J.F. van
Wijngaarden P. van
Wijntjes T.J.
Zachariasse V.
Moret Ernst & Young
Veenstra Acc.-Consultants
Price Waterhouse Nederland
ACN Man. Consultants BV
Min. Volksgez., Welzijn en Sport
Universiteit Nijenrode
DSM
Moret Ernst & Young
Ministerie van Justitie
Beleggingsmij. Vest bv
Ministerie van VROM
Moret Ernst & Young
Kon. PTT Nederland NV
Digital Equipment
Lid Tweede Kamer (WD)
Cincinnati Milacron
IPA ACON Accountants bv
St. SOS Kinderdorpen
IMCA Cartonnages bv
GAD-Amsterdam
De Brauw Blackstone Westbroek
Coopers «& Lybrand
Coopers & Lybrand
KPMG
Limperg Instituut
Deloitte & Touche
Deloitte & Touche
NIVRA
Paardekooper & Hoffman
De Wert accoutants en bel.adv.
KPMG Accountants
Divisie CRI
NIVRA
Coopers & Lybrand
Vrije Universiteit
Van Zwol/Wijntjes Accen Bel.Adv
Landbouw-economisch Instituut
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Countiy
Zandbergen E.
Zanden P.M. van der
Zandvliet C.
Zon P.G.M, van der
Zon Th.G.H. van der
Zutphen L.C. van
Zwart H. de
Cyntje A.C.
Hollander A.J.
Nordemann H.H.J.
Ball I.
MacKenzie A.
Pryde D.
Brandsas H.
Erlandsen O.P.
Farstad N.
Fjeldberg O.
Gjovikli E.
Gronn T.
Haanes J.G.
Hanstad P.
Moen S.
Paryzinski Z.
Alves da Silva AJ.
Prata J.J.
Al-Rashed A.A.R.
Al-Mobarak Y.M.
Cathinji N.
Jager T.T.
Mockler K.
Radder G.
Singer M.
Somerville I.J.
Steyn J.
Casals R.
Gasso J.M.
Peregrina J.
Sneyers A.
Spinosa-Cattela R.
Termes F.
Edlund B.
VAS; WIK
Moret Ernst &. Young
S.I.O.O.
Gem. Ace. Dienst Amsterdam
Gem. Ace. Dienst Amsterdam
Vrije Universiteit
EDP Audit Pool; Min. van Fin.
Deloitte «& Touche
Rabobank
University Netherlands Antilles
Victoria University, Wellington
New Zealand Society of Ace.
New Zealand Society of Ace.
NSRF
Norwegian Inst, of Reg. Ace.
NSRF
Arthur Andersen & Co.
NSRF
NSRF
Norwegian Inst, of Reg. Ace.
NSRF/Coopers «& Lybrand
NSRF
Nat. Chamb. Chart. Ace. Poland
Camara Revis. Off.des Contas
Al-Rashed Certified Public Ace.
Saudi Org. for Cert. Publ. Ace.
Moret Ernst & Young
The S.AInst. of Chartered Ace.
The S.AInst. of Chartered Ace.
Vista University
The S.AInst. of Chartered Ace.
lASC/OK Bazaars (1929) Ltd.
Independent Dev. Trust of South Africa
Inst. Aud.-Cens. Jur. de Cuentas
Inst. Aud.-Cens. Jur. de Cuentas
Inst. Aud.-Cens. Jur. de Cuentas
Price Waterhouse
El Aguila S.A.
Inst. Aud.-Cens. Jur. de Cuentas
Coopers & Lybrand
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands Antilles
Netherlands Antilles
Netherlands Antilles
New Zealand
New Zealand
New Zealand
Norway
Norway
Norway
Norway
Norway
Norway
Norway
Norway
Norway
Poland
Portugal
Portugal
Saudi Arabia
Saudi Arabia
South Africa
South Africa
South Africa
South Africa
South Africa
South Africa
South Africa
Spain
Spain
Spain
Spain
Spain
Spain
Sweden
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Country
Heurlin S.
Hjorth K.E.
Johansson M.
Lundfors L.B.
Markland B.
Nordin U.B.
Bachmann P.
Brun J.
Helbling C.
Schultz G.
Lai S.B.
Lee P.
Vester P.P.H.M.
Massawe E.
Basaran C.
Turker M.
Yalkin Y.K.
Beattie A.E.
Bergin D.
Bonney B.
Brand H.
Bygrave C.
Cairns D.
Calligaro NJR.
Cashel M.
Chester J.S
Clark C.V.B.
Clifton R.
Colquhoun A.J.
Crouch P.
Currie B.
Darbyshire D.
Duperovzel B.
Frazer A.
Glancy T.M.
Grabowski M.T.
Hanson J.
Harding F.
Harvey M.
Hepworth N.P.
Jackson M.S.
Ohrlings Reveko AB
Svenska Revisorsamfundet SRS
Svenska Revisorsamfundet
Deloitte & Touche
FAR
Price Waterhouse
STG-Coopers & Lybrand
ATAG Ernst & Young
STG-Coopers & Lybrand
KPMG Fides
Ministry of Audit. Second Bureau
Arthur Andersen
KPMG Peat Marwick
ECSAFA; Massawe & Co.
Expert Ace. Assoc, of Turkey
Turmob
Turmob
The Inst.of Chart.Acc. Schotland
ASCPA European Group
Australian National Audit Office
Chartered Inst, of Man. Ace.
Ernst & Young
Alpha Omega Resources Ltd.
Australian High Commission
Chartered Inst, of Man. Ace.
South Bank University
Commonwealth Developm. Corp.
ICAEW
Prolific
Inst, of Chart. Ace. in England
h t E - Arthur Andersen
EDS
ACCA
Chart. Inst, of Management Ace.
Price Waterhouse
Ass. of Accounting Technicians
KPMG
ACCA
CIPFA
National Westminster Bank pie.
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Switzerland
Switzerland
Switzerland
Switzerland
Taiwan
Taiwan
Taiwan
Tanzania
Turkey
Turkey
Turkey
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Country
Johnston P.
Keegan M.
Langford R.E.
Lawson R.H.
Lothian N.
MacDonald N.C.L.
Marrian I.F.Y.
Mason G.
Mattar A.
Maurice J.
McGrath K.
Milanese A.
Nobes C.
Patient M.
Percy J.P.
Price B.
Riney C.
Rose A
Sheridan T.J.
Sleigh M.
Tettenborn R.G.
Tollis B.H.
Vallings G.
Wagener J.
Walker D.H.
Wilkes R.
Williams J.A.
Wilson M.
Wrighter-Wilkinson P.
Abreu Paez V.M.
Andersen R.A.
Dalessio A
Chiomento B.
Enthoven A.J.H.
Eriksson O.
Gruner J.
Kelley M.
May R.L.
Polansky G.A.
Quinn L.C.
Rimerman T.
The Inst, of Chart.Acc. Scotland
Price Waterhouse
I.C.A.E.W.
Inst, of Chart. Accountants
The Inst.Chart. Ace. of Scotland
Ernst & Young
The Inst.of Chart.Acc. Schotland
Ass. of Accounting Technicians
Arthur Andersen
IFAC Ethics Committee
Australian National Audit Office
WS Atkins International
Coopers & Lybrand
Int.Auditing Practices Committee
The Ace. Comm. for Schotland
Lishman Sidwell Campbell & Price
ASCPA European Group
ACCA
CIMA
ACCA
CIFPA
Lafayette RE
Chart.Inst. of Management Ace.
The Economist Group
KPMG
ICAEW
Chart. Inst, of Management Ace.
North Essex Health Authority
Inter American Accounting Assoc.
World Bank
IFAC
IFAC
University of Texas
IFAC
IFAC
IFAC
IFAC - Council and EXCOM
IOSCO
Frank Rimerman & Co.
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
LIST OF PARTICIPANTS (BY COUNTRY)
Name Organisation Country
Robbins B.
Roussey R.S.
Sempier R.
Montaldo O.J.
Willis M.R.
Price Waterhouse
Univ. of Southern California
Interamerican Ace. Association
Inst, of Chart. Ace. of Zimbabwe
United States
United States
United States
Uruguay
Zimbabwe
Participants: 525
Nationalities: 43
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
SOME "OFF THE RECORD" CONSIDERATIONS
WITH REGARD TO INDEPENDENCE
PROFESSOR LUCIANO HINNA
SOME "OFF THE RECORD" CONSIDERATIONS WITH REGARD TO
INDEPENDENCE
PREFACE
With respect to tlie subject "independence" • personally I am not
independent since I worked for 10 years as an audit partner, to-day I am
involved in consultancy and teach auditing at the University where I feel very
much aware of the responsibility which I have - that of providing the first
cultural and technical foundations for those who will one day exercise tliis
profession.
The spirit of this conference is "people talking to other people" therefore
I would like to treat the topic of independence not as one of Üie critical points
of our profession, even if it is ciitical, but as reflections spoken aloud to discuss
with other people and other professionals.
I do not intend, therefore, to talk about the topics "on the table" which
we all know and to which I probably could not add much, apart irom my
personal opinion.
I would like to point out immediately, perhaps disappointing some
people:
that I will not discuss the possibility of carrying out the activity of
consultancy in addition to tlie activity of auditing;
I will not discuss whether it is just or not to give consultancy assistance
to the companies who are normal audit clients;
I will not discuss the subject of rotation of clients among paitners or
among firms;
I will not touch the subject of competition practised with low fees;
1
and finally, I will not discuss the need for check lists which take into
consideration all the various possibilities of independence.
What I will try to do is something rather different, of a more general
nature but which I hope will be equally useful - analyse the problem of
independence from a completely different point of view.
I shall anticipate immediately my conclusion:
Independence does not exist - dependence exists, the important tiling to
do is recognise this and act accordingly.
There are two types of independence:
the formal economical independence, which can be measured, and the
independence of thought which touches the personal sphere, the psychological
independence which cannot be measured but which a professional must have
and which weights heavily on the quality of the profession of auditor much
more so than tliat of tlie first type of independence.
Behind all the scandals which have been filling the international
economical newspapers in the last few years you never read that the cause was
economical dependence but perhaps there are elements which in some measure
lead to the more professional sphere of independence of thought.
THE BACKGROUND IN WHICH THE SUBJECT OF INDEPENDENCE CAN BE
INSERTED
The perception which we auditors have of the subject of independence is
different from that which others may have.
Our profession is undergoing a critical period; something in the system
has not functioned as it should (our teclmique, the size of the firms, the
controlling authorities, etc.) and as it happens in a football matcli - you notice
the goalkeeper only when he doesn't save a goal but never notice the hundreds
2
of times when he does save goals and saves them well - it is the same thing with
the public opinion they only notice when the auditor hasn't done his job
properly or because some scandal has happened and if the precise reason cannot
be discovered (normally a combination of several reasons) well, out comes the
subject of independence which is nothing less than an attack on professional
integrity, the vaguest of accusations but also the worst type of accusation that
can be made against a professional.
In this syndrome of "goalkeeping" the attention is all on the auditor but:
people forget normally - the size of the various companies and their
international networks and the possibilities offered by "tax havens" or by
countries with "soft" accounting control regulations which can create "a
black hole" in the process of auditing consolidated Balance Sheets;
as Prof Anthony pointed out in the Harvard Business Review more than.
IS years ago, the Balance Sheet has enormous limits in respect of
financial companies and "know-how" companies and it is easily
forgotten that inside the big business groups, even the industrial ones,
there is a large financial and know-how component;
one forgets that company managements since 1972 onwards, after the
financial crisis, have increased their tendency towards financial activity
which means that to guarantee economic results on average with the
market, the manager, who is measured by ROI, assumes an increasingly
speculative attitude, and in comparison a less industrial attitude.
But in this scenery what do people remember? - or perhaps it only easier
to remember - the auditor and the subject of independence. Is this only a
marginal point?
All this is imderstandable. It is objectively difficult for tlie public
opinion ("non auditor people") to understand how "someone" can remain
independent when that "someone" is paid by the people who are the object of
his controls.
3
The economical news is full of companies in bankruptcy just as the
market is full of unscrupulous managers, poker players, who don't always
follow the rules and, in the game of probabilities can't always win and when
they lose, they hide their losses in the "folds" of tlie balance sheet.
The economy, we know, ricompcnses the winners and as Oscar Wilde
said in one of his aforisms, the difference between a gentleman and a rogue is
that we know all about tlie bad deeds of the second but of the first we know
nothing yet. The auditor doesn't have the possibility of knowing beforehand if
he is dealing with a gentleman or a potential rogue and therefore he must be
independent in thought.
He cannot wait for proof to the contrary, he must not allow himself to be
influenced by respectability, by the visible results of success. But this is not at
all easy if you want to stay in business.
Tliis is the background scenery for the subject of independence of the
auditor, a subject apparantly easy to resolve - or rather easy to regulate, but
perhaps not so easy to resolve.
We all live in the global village and a crisis of image in the USA or in
Italy or in any other part of the world is reflected on the profession at a
worldwide level.
How TO ENSURE INDEPENDENCE
In the first instance, it is important to define how many types of
independence exist, how to measure them and with respect to whom an auditor
must be independent.
The are two types of independence, as already stated: a formal
economical independence which can be measured and which is tlie object of the
code of ethics of the profession, of the lules, of the regulations for
incompatibility of each countiy. They are the rules and regulations which we
4
study, which can be changed and which can be used as questions in the
Professional exams of the State in order to qualify to practise the profession.
Then there is the independence of thought, or better the dependence of
thought which each one of us must recognise which is perhaps the kind of
independence which touches us more closely, more intimately, the
psychological aspect which you don't study, but learn tlirough experience and
internal torment and crisis, which can really influence the professional activity
and in a much greater manner than the flrst type because it cannot be seen and
remaining hidden, it cannot be measured.
Let's look at the first type of independence, the economic formal
independence, the classical greek syllogism of Plato, there is the rule, there is
the fact, there is the judgement.
In the first countiy there is a rule which allows the auditor to carry out
consultancy services for a client where he ab'eady carries out the audit: the rule
is clear, the fact also, the judgement is - "the auditor is independent".
In the second coimtry the rule is different (or perhaps in the first countiy
- the rule changes!) the fact remains the same but the judgement changes.
It would appear cleai' in this context that what our society guarantees is
not the spirit of professional independence but the application of the law, but •
I ask myself and I ask you, is this fair?
Are we sure that the "non auditor people" (public opinion) can
understand the situation?
There is no law which forbides a medical doctor to operate on his own
son but no-one does it. A journalist can comment something giving his own
vision of the fact or simply pass on the news to his readers but nothing can
measure his independence. The problem of independence affects all
professions in varying measures.
5
In the philosophy of law a distinction is made between "dicere legem"
and "dicere jus". To apply the law does not necessarily mean to do justice - just
as applying the rule on independence does not mean that one is independent.
Certainly abstract formalism ensures order and uniformity of behaviour
but it does not guarantee the substance, certainly it all forms part of our culture
of auditors, the syllogism: rule, fact, judgement, we auditors apply it
constantly: the rule: the accounting principles; the fact: the client's accounting
system; the judgement: our opinion.
The point where I would like to lead your considerations is on the other
side, on that of the "dicere jus" or ratlier to be independent in substance, but the
questions which the auditor must ask himself at this point is: "to be independent,
is it sufficient to follow tlic rules?"
In 1964 (21 years ago) when 1 started work as an auditor in one of the
big eight firms (at that time the big firms were still eight!) I received an office
manual - absolutely private and confidential • numbered and dated May 1964.
In this manual independence is defined as follows:
"The staff should exercise discretion in their relations with the client and his
staff and, whilst a spirit of friendship and cordiality should prevail, undue
familiarity should be discouraged."
Naturally this is an office manual and not the rules set down by a
professional body but it is important to verify how it does not give rules but
simply recalls your attention to personal behaviour.
As a hobby I like to cook but I am not a "chef so when I read a cooking
recipe which describes the amount of sugar, salt, pepper etc. in Italian "quanto
basta" which means "as much as is necessary" (the English translation is
"season to taste" but it does not express the concept so clearly) • I panic • I am
not a professional chef -1 do not know "how much" in terms of quantity is
necessary.
6
The example is perhaps rather stupid but it is useful to emphasis that a
professional does not need detailed rules • it is only the junior professional who
needs them but if he uses them too much he will never grow to become a
professional since it is experience which tells you "how much"
The auditor frequently resembles a judge since in his profession he is
called upon to express a judgement, an opinion where implicitly a judgement is
hidden and on the outcome of which often depends quotations on the Stock
Exchange, the possibility for the company to find new money etc. but the
auditor is not a judge, he is partial. The auditor (as Mr. Ring points out) is only
really independent when he does not cany out his profession or rather he is the
arbitrator, otherwise he is dependent. He is partial on behalf of the third party
whose interest is in the reliability of the balance sheet. His client is not the
company which pays him but the public who does not pay him but who uses his
opinion for their decisions. With respect to the balance sheet of a company, the
auditor therefore is dependent, he is more like the public prosecutor, guardian
of public interest, of the third parties rather tlian an impartial judge.
How does all this affect tlie independence of thought?
As I already said at the beginning, independence doesn't exist,
dependence exists and the important thing is to recognise when it is still a weak
signal, an intuition and act accordingly.
An auditor who allows himself to be dazzled by the public image, the
credibility, the economical aspects and assets which a company controls, by the
fame and success of the managers of the company of whom he has been asked
to express an opinion on the balance sheet, risks in this context to see first the
gentleman and not the potential rogue. If this happens he loses his "prejudices"
and is no longer able to defend tlie interests of his "client" - the third party - the
public opinion.
Where the third party (public opinion) tliinks that the auditor has not
carried out his work correctly it is very critical with regard to the auditor - more
so than with other categories of professionals and we must ask ourselves why?
7
The answer is that the auditor holds a position of trust and as such his
work contributes to creating trust. He is in the communications sector, the
economical and financial sector but most important he is in the visibility sector,
he often contributes to the creation of a myth or a legend. It is for this reason
that he cannot be pardoned when he commits an error or even when Public
Opinion only thinks that he has committed an error. The auditor contributes to
the creation of the image which he is supposed to verify and guarantee.
Undoubtedly it is for this reason that when the leverage effect is negative it is
exaggeratedly negative because when it is positive it is exaggeratedly positive.
When auditors make a mistake, the public opinion has the same attitude
towards them as it has towards journalists. This category of professionals is not
allowed to err, they don't make mistakes, they betray! and this is common to
many other professions where there is an underlying position of tiist.
To complete the subject of independence or dependence I would like to
point out that the auditor must defend himself from dependence on himself.
This might seem like a paradox but in actual fact it is very important.
The auditor has an image to defend, the credibility created in years and
years of hard work can be ruined in a few hours. It is his duty to continue the
story of the firm with which he collaborates and he has, like a mission, the duty
to remain on the market and grow and develop qualitatively and quantitatively.
In a market which moves rapidly like that of auditing anyone who doesn't move
equally rapidly gets left behind.
A few centuries have passed since professionals did not receive payment
for their work because tlieir professional services were considered honorary
(now considered honoriarium or fee), but missionaries in tlie business world are
almost non existent if not extinct and the auditor is and must be a business man.
This is something which he must watch very carefulljj but here we risk sliding
into another topic which is that of market competition, which is part of the
mosaic of the puzzle of independence which I promised myself I would not
touch.
8
CONCLUSION
From all that has been said up until this point, it is clear that the factors
which can undermine tlie independence of thought are many, not easily
measurable, not easily recognisable and not easily inserted in a check list in the
professional code of ethics.
Independent thinkers are not bom and we don't become one
automatically when we take tlie qualifying exams.
The strict observance of the written laws and of the economic and formal
independence is of little use and can in fact hide the danger of not recalling
sufficient attention to the independence of thought and risks the possibility of
lowering the psychological barriers in respect of the subject of the conference
which is extremely important and delicate.
The profession of auditor is difficult.
Roger Caillois, the French academic, has classified in a very suggestive
manner the games, and therefore the social organisational models in four
archetypes which can easily be applied to business:
AGON competition commercial competition
ALEA luck, chance speculation, prepared to risk
MIMICRY mask, image professional representation, unifonn,etiquette
ILINX vertigo operate on the borderiine between success
and failure
The auditor doesn't respond to any one of these types but to all of them.
In conclusion wc must try to link the four archetypes Agon, Alea,
Mimicry, Ilinx with tiie three pillars of the professional activity:
9
Theoretical Knowledge study, school, university
Practical Knowledge training on tlie job
Self Knowledge our own personal internal growth
The subject of independence is present in all three aspects but the third is
the most important.
As we are aware of the need for technical updating, for tlie renovation of
methods, we must be equally aware of the need for a permanent interior
training of the "spirit of the professional".
The frontier which we must look towards is certainly that of technical
preparation of the professional practice and experience but above all that of
personal internal formation. A permanent training which permits us to enrich
our knowledge and our know-how but above all "to be" since it is this last
aspect which counts most in a profession.
Independence cannot be studied, cannot be read, but we can be educated
to live it and it is this thought that we must commit ourselves to transmit to all
our younger colleagues.
10
• ,
FEE/lFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
ASSURANCE SERVICES
CHAIRMAN'S INTRODUCTION BY MATTHEW PATIENT
PUBUC EXPECTATIONS
"Auditors give assurance on:
financial statements are right
the company will not fail
there has been no fraud
the company has acted within the law
it has been competently managed
it has adopted a responsible attitude towards environmental
and societal matters"
THE PROFESSION'S ABILITIES
Commercialism versus professionalism
The use of scarce resources
The impact of litigation
SOCIETY'S NEEDS
Is independent attestation still needed?
Is society willing to pay?
Does Society want auditors to be free of commercial pressures?
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
"Influences of financial information on share prices"
Eiichi Shiratori
Chairman of the International Accounting Standards Committee
I am honoured to have been asked to act as moderator for this session.
The theme of the conference is "People for People" and I intend to say a
few brief words on the "people" aspects of communication. In particular, I
wish to summarise the role that International Accounting Standards can play
in improving communication. I do not intend to survey the vast amount of
excellent academic research that exists on the efficient market hypotheses
and the effect of financial information on share prices.
Making financial information useful to users
The lASC's Framework for the Preparation and Presentation of Financial
Statements recognises that financial statements should be prepared and
presented with the needs of users in view. Thus, information provided in
financial statements should be:
(a) readily understandable by users;
(b) relevant to their decision-makinj needs;
FEE/IFAC 1S)95 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
(c) reliable;
(d) and comparable with information provided by the enterprise itself in its
financial statements through time and with information provided in the
financial statements of different enterprises.
The lASC's Framework says that, to be reliable, information must:
(a) represent faithfully the transactions and other events it either purports
to represent or could reasonably be expected to represent;
(b) account for, and present, transactions and other events that it purports
to represent in accordance with their substance and economic reahty
and not merely their legal form;
(c) be neutral, that is, free from bias;
(d) contend with the uncertainties that inevitably surround many events and
circumstances by the exercise of prudence (although the exercise of
prudence does not allow, for example, the creation of hidden reserves
or excessive provisions, the deliberate understatement of income, or the
deliberate overstatement of liabilities or expenses); and
(e) be complete within the bounds of materiality and cost.
Information is considered to be material if its omission or misstatement
could influence the economic decisions of users taken on the basis of the
financial statements.
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
Presentation of Financial Statements
As lASC Steering Committee has recently published a Draft Statement of
Principles on the Presentation of Financial Statements. If you wish to
comment on these proposals, the period for comments ends on 30 June
1995.
The Steering Committee proposes that minimum structures should be
provided to promote comparability and therefore to assist users in
understanding financial statements. Beyond this, it believes that financial
statements should be presented in a common format to the extent that this
does not detract from their relevance to the needs of the users of each
enterprise's financial statements. The approach proposed is to:
* require certain minimum disclosures on the face of the financial
statements;
* to require other line items to be disclosed either on the face of the
financial statements or in the notes to the financial statements; and
* to set out a recommended format as an appendix to the Standard which
an enterprise may follow as appropriate in its own circumstances.
The Steering Committee also proposes that:
* information that is not specifically required by an International
Accounting Standard, but would assist in meeting the objective of
financial statements should be included in the notes to the financial
statements; but
* information which is qualitative in nature or based on management's
interpretations and forecasts and therefore not readily capable of
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
verification, but which management believes Should be provided to assist
in users' understanding of an enterprise's financial position, performance
and cash flows, should be presented outside the financial statements.
Recognition or disclosure?
It is sometimes argued that disclosure in the notes to the financial
statements is an adequate substitute for recognising the effects of transac­tions
and events in the balance sheet and income statement. lASC does not
agree - we believe that assets and liabilities should be included in the
balance sheet and that income and expenses should be included in the
income statement. The failure to recognise such items is not rectified by
disclosure of the accounting policies used nor by notes or explanatory
material.
Risks and the expectation gap
Most financial information is subject to some risk of being less than a
faithful representation of that which it purports to portray. This is not due
to bias, but rather to inherent difficulties either in identifying the transac­tions
and other events to be measured or in devising and applying
measurement and presentation techniques that can convey messages that
correspond with those transactions and events.
In certain cases, the measurement of the financial effects of items could be
so uncertain that enterprises generally would not recognise them in the
financial statements; for example, although most enterprises generate
goodwill internally over time, it is usually difficult to identify or measure that
goodwill reliably. In other cases, however, it may be relevant to recognise
items and to disclose the risk of error surrounding their recognition and
measurement.
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
It is probably true that many users do not understand the limitations of
financial statements and this creates an "expectation gap". I believe the
preparers could do more to disclose uncertainties surrounding the
measurement of many items in the financial statements.
Summary reporting
Many less sophisticated users find financial statements confusing and off-putting.
Some countries and companies are experimenting with simplified
forms of financial reporting for such users, usually retaining more formal
reporting for more sophisticated users, such as analysts. lASC does not
intend, at present, to issue guidance on this topic, believing it to be a more
suitable area for national regulation.
It is sometimes argued that financial information about complex matters
should be excluded from the financial statements on the grounds that it may
be too difficult for certain users to understand. lASC does not agree -
information about complex matters should be included where it is relevant
to the economic decision-making needs of users even where it may be too
difficult for certain users to understand.
Conclusion
I have already monopolised the discussion for long enough. Does anyone
have any comments?
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
SOCIALE VERZEKERINGSBANK (SVB)
"THE PRICE OF PARADISE"
PIET A. SCHAAFSMA
B Sociale Verzekeringsbank
1. System of social security
. industrial insurance schemes
. national insurance schemes
. other social security provisions
2. Industrial insurance schemes
. Sickness Benefits Act
. Disablement Benefits Act
. Unemployment Benefits Act
. Health Insurance Act
3. Who is insured under which schemes
4.
5.
who employees
when
Sickness Benefits Act-
Disablement Benefits Act-
Unemployment Benefits Act-
Health Insurance Act-unable
to work due to illness
unable to work due to illness or disability
Loss of at least 5 hours work per week
need for health care provisions
Recent developments
reducing the collective financial burden
policy to reduce the volume of benefits
responsibility of employer and employee
privatization
total payments
Sickness Benefits Act 4.7 billion
AAW/WAO
disablement benefits
21.5 billion
number of claimants
170,000 current
800.000 awards
900,000
WW 9 billion
unemployment benefits
Health Insurance Act 15.7 billion
400,000
9,500,000 (62.2%)
6. National Insurance Schemes
. AOW (Old Age Pensions Act)
. National Widows' and Orphans' Pensions Act (AWW)
. National Child Benefits Act (AKW)
. AAW (National Disablement Insurance Act)
. AWBZ (National Act on Exceptional Medical Expenses)
7. Who is insured under which schemes
Who: all residents
When:
AOW
AWW
AKW
AAW
AWBZ
as from age 65
widows, widowers and orphans
children up to age 18 (in some cases up to age 24)
in the event of long term incapacity for woric
in the event of medical needs not covered by health insurance
Recent developments
the ageing population
combatting benefit fraud
means testing
siblings sharing a household
verification and control of legitimacy
9.
AOW
AWW
AKW
AAW
AWBZ
total payments
32.6 billion
4.8 billion
6.9 billion
16.1 billion
23.8 billion
number of claimants
2,100,000
195,000
1,800,000 claimants
3,500,000 children
900,000
141,000 in care institutions
10. other social security provisions
11. . National Assistance Act
. lOAW/IOAZ (income provisions for older or partially disabled
unemployed/formerly self-employed persons)
. Sheltered Employment Act (WSW)
. Act on Provisions for the Disabled (WVG)
. Supplementary Benefits Act
12.
13.
Who is insured under which schemes
who: all residents
When:
National assistance those who are unable to provide for themselves at
the minimum subsistence level
lOAW/IOAZ Older or partially disabled unemployed and formerly self-employed
persons
WSW those who are excluded from the regular labour marked due to a
handicap
WVG disabled persons who require provisions for the home or for
transport
Supplementary Benefits Act Provides supplementary benefits if the
total income is under the minimum
subsistence level
Recent developments
more responsibility for municipalities
incentives (activating those dependent on benefits)
combatting benefit fraud
evaluating the provisions for the disabled
14. Key figures
National Assistance
lOAW/IOAZ
WSW
WVG
Supplementary Benefits
total payments
11 billion
631 million
3 billion
1.1 billion
729 million
number of claimants
516,000
27,000
80,000 (1 billion in income)
150,000
107,000
15. System of social security
Industrial insurance schemes
Sickness Benefits Act 170,000
AAW/WAO
disablement benefits
WW
unemployment benefits
Health Insurance Act
national insurance schemes
AOW
AWW
AKW
AAW
AWBZ
Other provisions
National Assistance
lOAW/IOAZ
WSW
WVG
Supplementary Benefits
900,000
-
400,000
62.2%
2,100,000
195,000
1,800,000
3,500,000
900,000
141,000
516,000
27,000
80,000
150,000
107,000
-
claimants
children
Total amount 150 billion
kj^ B Sociale Verzekeringsbank
The organisation and its services
INTRODUCTION
The Netherlands has an extensive social security
system comprising a great many acts and regulations.
Several organisations -including the SVB- are
involved in the implementation of the different
schemes.
Social insurance legislation in the Netherlands can
roughly be divided into two categories: industrial
insurance and national insurance. Broadly speaking,
industrial insurance covers all employees. National
insurance, on the other hand automatically covers
everyone who lives or woris in the Netherlands; this
is established by law. So everyone in the Netherlands
has something to do with national insurance.
Three of the national insurance acts are implemented
by the Sodale Verzekeringsbank (Social Insurance
Bank, abbreviated to SVB). These are the General
Old Age Aa (AOW), the General Widows and
Orphans Aa (AWW) and the General Child Benefits
Aa(AKW).
The SVB makes siu-e that over 2.2 million people
receive their monthly AOW or AWW pensions, and
that some two million families receive quarteriy child
benefit payments. Benefits paid by the Sodale
Verzekeringsbank in 1992 totaUed over 43 billion
guilders, which makes the SVB one of the largest
implementing bodies for Dutch social insurance.
Aldiough over four million dients rely on the services
of the Sodale Verzekeringsbank, surprisingly few
people are aware of what the SVB does.
This brochure gives you an outline of the national
insurance aas implemented by the SVB and a brief
descripnon of the SVB itself.
GENERAL OLD AGE ACT (AOW)
The General Old Age Aa (AOW), which took effea
on 1 January 1957, is the oldest and perhaps best
known national insurance scheme of the Nether­lands.
People aged 65 and over who have been
insvired under the AOW are entitled to an old age
pension. Generally speaking, everyone who lives in
the Netherlands is insured, regardless of nationality
or income. People who do not live in the Nether­lands,
but who work and pay tax there, are usually
insured as well. In many cases, people who leave the
Netheriands or take a job abroad are no longer
insured. In these cases it is possible to continue
AOW insurance on a voluntary basis.
The AOW is an accrued benefit pension scheme.
This means that the amoimt of AOW pension a
person receives depends on the number of years that
he or she has been insured. For each year of insur­ance
between the 15th and 65th birthday, a person
builds up 2% of the fiill pension. So a full AOW pen­sion
can be built up in 50 years - from the age of 15
to the age of 65. If a person has not been insured for
one or mote years, the pension is reduced by 2% for
each non-insured year.
The AOW is paid at different rates: there is a rate for
unmarried persons, a rate for single-parent families
and a rate for couples who are married or living
together. Pension redpients are also entided to a
holiday allowance, which is paid in May of each year.
The AOW pension starts on the first day of the
month in which a person reaches the age of 65.
GENERAL WIDOWS AND ORPHANS ACT
(AWW)
The General Widows and Orphans Aa (AWW)
provides pensions for widows and widowers who are
under the age of 65. The surviving spouse is eligible
for an AWW benefit if the deceased was insured
under the AWW at the time of death. The AWW also
provides orphan's pension for children who have
been orphaned by the death of both their parents.
Generally speaking, all people who live in the Neth­eriands
are insured.
The AWW has diree types of benefits: AWW pen­sion,
temporary AWW benefit (for a widow or
widower who is not entided to AWW pension) and
orphan's pension. The AWW pension or benefit
starts on the first day of the month in which the
insured person died.
1
It is expeaed that the AWW will be replaced a new
aa, the General Survivors Aa (ANW).
GENERAL CHILD BENEFITS ACT (AKW)
The General Child Benefits Aa provides a finandal
contribution to the cost of raising children. Broadly
speaking, people-who live in the Netherlands are in­sured
under the AKW. People who do not live in the
Netherlands but who work and pay tax there are usu­ally
insured as well.
The amount of child benefit depends on the number
of children and on their age. The SVB pays child
benefit on a quanerly basis. Entiuement to child ben­efit
is assessed on the first day of each quarter.
Further information on the AOW, the AWW and the
AKW can be found in the brochures which are avail­able
firee of charge ft-om all offices of the SVB.
THE SVB
DISTRICT OFFICES
The district offices serve all daimants of AOW,
AWW and AKW pensions and benefits who live in
the Netherlands. The district office handles and
assesses applications and pays AOW and AWW pen­sions
and child benefit for all the residents of that
district.
After a pension application has been submined and a
pension has been awarded, the Pensions and Benefits
Department of the district office pays out the pen­sion.
A AOW application should be submitted to the
distria office at least three months before your
65th birthday. Application forms are available fi-om
the distria offices and from the post office.
The Child Benefit Department implements the
AKW. Child benefit is paid on a quanerly basis. The
munidpal authorities provide an application form for
child benefit when you negister the birth of your first
child or when you take up residence in the Nether­lands.
Sometimes the district office carmot process
an application on the basis of the information pro­vided.
In that case, an SVB employee may visit the
applicant at home to obtain some more details.
If you have any questions or would like more infor­mation,
you can of course write or phone, but you
may also visit your distria office. Each distria office
has spedal staff whose job it is to answer your ques­tions.
Because the district offices are not always close
to home, their employees visit the surrounding com­munities
on certain days. Your district office can give
you fiirther information about this. The addresses of
the distria offices are listed at the back of this bro­chure.
An application for pension or child benefit goes to
the distria office, which then makes a formal ded-sion
on the applicant's entidement. If an applicant
does not agree with the decision of a distria office, he
or she should first get in touch wi± the distria office.
Perhaps the problem can be solved there. If this is
not satisfaaory, an appeal may be lodged with the
Distria Court. The dedsion of the distria office
indudes an explanation of how to lodge an appeal.
If a daimant wishes to complain about the way he or
she has been treated by the SVB, this should be
reported to the district office. The SVB has an offidal
complaint procedure and regulation. Information on
this procedure can be found in a brochure which is
avaiable from all SVB offices.
INTERNATIONAL OFFICE
The International Office is another part of the SVB.
This office, located in Amsterdam, serves all AOW,
AWW and some child benefit redpients who live
outside the Netheriands.
Persons who live in an EC Member State should
submit their application for AOW/AWW pension to
the sodal insiuance instimtion in their coimtry of
residence. This institution passes the application to
the Intemational Office, where the entidement to
pension is established. The same procedure applies
to daimants who live in countries with which the
Netheriands has conduded a sodal security conven­tion.
A list of these countries can be found on page 6.
If you live in any other country, you can submit your
AOW/AWW application direct to the Intemational
Office.
The Sodale Verzekeringsbank consists of a head
office, a second computer centre in Nieuwegein,
22 distria offices, an Intemational Office and an
Insurance Office. This is a relatively new strucnire.
Until 1 April 1988 the distria offices were known as
Laboiu- Councils and came imder the supervisory
control of the Sodale Verzekeringsbank. Over
3700 people are curtendy employed by the SVB.
SVB policy is formulated by a board consisting of
representatives of employee and employer organisa­tions
and of members appointed by the Minister of
Sodal Affairs and Employment. The day-to-day
management is in the hands of the executive board.
The Sodale Verzekeringsraad (Sodal Insurance
Coimdl) is the supervisory authority for the SVB.
The Interrutional Office is also involved in imple­menting
a scheme which provides a permanent
monthly benefit for certain workers who wish to
return to their country of origin. To be eligible for
such a benefit, a person must have been an official
resident in die Netherlands for at least five years. The
claimant must also have been unemployed or dis­abled
for more than six months and must receive a
social insurance benefit. Tlie SVB carries out the
payment of these benefits under the auspices of the
Ministry of Social Affairs and Employment.
INSURANCE OFFICE
HEAD OFFICE
The head office of the SVB is in Amstelveen. Impor­tant
tasks of the head office are policy preparation
and the provision of support and assistance in fidds
such as automation and information. We will outline
a few examples here.
The SVB implements a number of sodal insurance
acts. These acts change quite regularly -for instance,
they may be amended by law or altered by a court
dedsion. Sodal security conventions concluded by
the Netherlands with other countries also influence
the way the legislation is applied. A team of legal
specialists smdies the effeas of an amendment, for
example, on the aaual implementation of an act, and
then sets down guidelines for the district offices.
As we already mentioned, the SVB paid out over
43 billion guilders in 1992. The money needed to
pay AOW and AWW pensions and child benefit is
obtained fi-om national insurance contributions and
fix>m funds supplied by the national government.
Everyone w^o has an income in the Netherlands
pays AOW/AWW contribution. The Dutch tax
authorities collect these contributions and add them
to the various funds from which the AOW and AWW
pensions are paid. The national govenunent allocates
funding for child benefit and some funding for the
AWW. The SVB controls these funds.
With over four million clients, some 35 million
payment transactions each year and a data storage
file for over 10 million persons, a well-versed auto­mation
department is definitdy a must. It will come
as no surprise that the SVB has a large computer
centre with links to all distria offices.
The head office is also responsible for the implemen­tation
of the FVP scheme. The FVP scheme aUows
unemployed persons aged 40 and over to continue to
acoue supplementary pension rights temporarily
without contributions firom themsdves or their
former employers. Under this scheme the FVP fimd
pays contributions for supplementary pension insur­ance
for certain groups of unemployed persons so
that their future pensions are not adversely affieaed.
BETTER AND FASTER SERVICE FROM THE
SVB
The SVB has changed gready since it was founded
over 90 years ago. The most recent example is the
radical change in the organisational structure; cur-rendy
important developments are under way in the
field of automation. This is necessary to make our
service to you, our client or future client, even bener
and faster.
Sooner or later, almost everyone who has ever lived
or worked in the Netherlands will have something to
do with the SVB. This aeates obligations: the SVB
must provide the best possible service to all its
clients. Commitment and a client-oriented attimde
can help to achieve this. But it means more than
prompt payment of pension and child benefit. It also
means optimising the flow of information between
clients and the SVB. With feedback fix)m its dients,
the SVB can continually work to improve its services
- which is ultimatdy in the interests of all.
The Insurance Office registers periods of AOW
insurance coverage and advises the distria offices
and the Intemational office on the assessment of
insurance records. These records allow the SVB to
establish the rate at which AOW pension will be
paid. Upon request, this department also provides
statements showing periods of insurance coverage
under the AOW. This is important for foreigners
w^o return to their country of birth, for instance.
This department also implements voluntary AOW/
AWW insurance. A person who moves to another
country or takes up work abroad is usually no longer
insured under the AOW and AWW. In that case the
insurance can be continued on a voluntary basis, so
that AOW pension continues to be built up and
fiiture entidement to AWW is not adversely affeaed.
Addresses and telephone numbers SVB
District Offices
Alkmaar
Amersfoort
forAOW
for AWW
for AKW
Amsterdam
Amhem
Assen
Breda
Den Haag
Dordrecht
Eindhoven
Groningen
for AOW/AWW
forAKW
Haariem
forAKW
Hengdo
for AOW/AWW
's-Hertogenbosch
Leeuwarden
forAKW
Leiden
Maastricht
Aiiddelbuig
072-192222
033-769911
033-769876
033-769877
033-769882
020-5600911
085-520911
05920-20911
076-289911
070-3709000
078-332899
040-455005
050-223666
023-319488
023-152152
074-494949
074-494881
073-125141
058-947234
058-947200
071-458311
043-821666
01180-91100
Rogier van der Weijdestraat 4
Postbus 30504
ISOO EB Alkmaar
StadsringlSl
Postbus 4100
3800 EC Amersfoort
Rhijnspoorplein 1
Postbus 41808
1009 DA Amsterdam
Oude Kraan 72
Postbus 9055
6800 GV Amhem
Stationsstraat 30-32
Postbus 30006
9400 RA Assen
Markendaalseweg 35
Postbus 90151
4800 RC Breda
Laan van Meerdervoort 55 R
Postbus 29732
2502 LS Den Haag
Spuiboulevard 100
Postbus 7001
3300 GA Dordrecht
Wal 28
Postbus 90000
5600 PA Eindhoven
Leonard Springerlaan 7
Postbus 576
9700 AN Groningen
Postbus 458
9700 AL Groningen
Stationsplein 90
Staten Bolwerk I
Postbus 1641
2003 BR Haariem
W. ten Catestraat 59
Postbus 5050
7550 GG Hengelo
Nieuwsuaat 79
Postbus 90156
5200 MH 's-Hertogenbosch
Tessdschadestraat 5
Postbus 2401
8901JK Leeuwarden
Hoge Rijndijk 306
Postbus 9104
2300 PC Leiden
Gaetano Martinolaan 75
Postbus 1917
6201 BX Maastricht
Segeerssingel 10
Postbus 6003
4330 LA Middelburg
4
Nijmegen
Rotterdam
Utrecht
for AOW/AWW
forAKW
Venlo
Zwolle
for AOW/AWW
forAKW
080-279799
010-4688800
030-9297J1
030-929799
030-929788
077-557333
038-298911
038-298789
038-298888
Nassausmgel 3
Postbus 9032
6500 JN Nijmegen
Schepenstraat 100
Postbus 70025
3000 LG Rotterdam
Moeder Teresalaan 100
Postbus 18002
3501 CA Utrecht
Nassaustraat 36
Postbus 1911
5900 BX Venlo
Zamenhofsihgd 23
Postbus 10056
SOOOGBZwoUe
Intemational Office (for people living outside the Netherlands)
Amsterdam 020-5400400 Van Leyenberghlaan 221
Postbus 7105
1007 JC Amsterdam
Insiu'ance Office
Amstdveen 020-6565656 Van Heuven Goedhartlaan 1
Postbus 357
1180 AJ Amstdveen
Head Office
Amstdveen 020-6565656 Van Heuven Goedhardaan 1
Postbus 1100
1180 BH Amstdveen
5
EC Member States Countries with which
the Netherlands has a
Social Security Convention
Belgium Australia
Derunark Canada
Germany Israd
France former Yugoslavian Republic
Greece Cape Verde Islands
Ireland Morocco
Italy New Zealand
Luxembourg Norway
the Netherlands Austria
Pormgal Tunisia
Spain Turkey
United Kingdom United States of America
Sweden
Switzerland
Uitgave: Stafbureau In- en Externe Betrekkingen
Van Heuven Goedhartlaan 1, Postbus 1100
1180 BH Amstelveen
februari 1993
6
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE RELEVANCE OF RESEARCH IN THE DEVELOPMENT OF
INTERPERSONAL SKILLS FOR ACCOUNTANTS
PROFESSOR J. P. PERCY
THE RELEVANCE OF RESEARCH IN THE DEVELOPMENT OF
INTERPERSONAL SKILLS FOR ACCOUNTANTS
INTRODUCTION
I should like to add my congratulations to NIVRA on this Centenary and to the
imagination in entitling this conference "People For People". Lying behind that title
is a deep acknowledgement of professionals as people which I believe was in the
minds of our forefathers when our Institutes were formed in the last century.
In such academic surroundings and in a country which has always valued its research
and education I am sure you would not expect me to answer the question I have been
given by merely listing out a set of interpersonal skills that the accountant presently
needs. It is my intention to be deliberately provocative and to paint a picture of our
history, the present problems of the profession and the fiiture, which I hope will
provoke our leaders into thought and hopefiiUy action. I will argue that new personal
skills are required for our members in the fiiture and suggest that our profession may
divide into "Physicians of Accounting" and Trade Associations. I do not expect
those who read this paper or listen to its delivery to agree with all the points I make
but I do hope that the seeds will settle and fertilise in their minds so that in a hundred
years fi"om now we can examine the enhancement of our profession rather than the
reasons why it destroyed itself by not meeting the needs of society. The question as
to the relevance of research I will treat as rhetorical. You would not expect an
honorary professor and chairman of the Research Committee of The Institute of
Chartered Accountants of Scotland to argue in any way that research was not
relevant.
Page 1
As you will see from this paper I believe that research should have a purpose which is
not surprising given my practical upbringing. I am an avid believer in the need for a
more developed highway of communication between the academic researcher and the
practical leaders of our profession if we are to harness the research and use it as a
means of forging ahead to meet the needs of society in the fiiture.
HISTORY
Let me first examine the past and where the profession of accounting presently finds
itself before looking to the fiiture.
As I have said, today we celebrate a Centenary, but we are young. Indeed The
Institute of Chartered Accountants of Scotland as the oldest body only goes back 140
years. I bow to the fact that Dutch accountants played an important role in banking
as far back as 1695 supplying information to The Bank of Scotland prior to the union
of Parliaments in 1707. The link between our countries is an important one and it is a
privilege to be here with you today. However 100 years or so is a short time and we
know from Pacioli that the concept of double entry book keeping goes back even
fiirther to 1494 and indeed you can go fiirther back to a reference to auditing in
Roman times, the word coming from the Latin, meaning to listen or to hear.
The formation of professional bodies for accountants however is relatively new over
1800 years after the birth of Christ. We are therefore only looking at bodies perhaps
three generations old. They were enshrined in order to protect the name of
accountancy and created so that those who belonged to them could produce the
highest standards of professional independent opinion in the public interest. The
formation therefore arose from the need for independent business people normally
found amongst accountants with, a legal background, to arbitrate and advise on
Page 2
matters independent of those who managed. Typical services were insolvency,
taxation, accounting and auditing.
The insolvency practitioner was appointed by the courts to independently rearrange
the assets of the company following management's failure, in the interests of those
independent of management ie creditors, banks and shareholders. They often
reconstructed the company into an ongoing differently shaped business which would
also protect the continuing interests of at least some of the employees and maintain a
service to the community where this was seen to be still required. Such practitioners
required a wide experience of business and knowledge of accounting, a toughness, an
independence and considerable interpersonal skills to achieve their objective. It is
interesting to note that still today individuals and not firms are appointed to such
positions even though those individuals require considerable back-up from their
firms.
The tax practitioner was noted for his ability to identify wdthin the tax laws of the
country, the quantum of taxation payable by a company and to agree this with the tax
authorities. Whilst interpreting the tax laws in the particular circumstances of that
company the accountant was seen as the objective middle man respected for a
professionalism which went largely unchallenged. To this day, even though firms are
appointed as tax advisors to companies, the key well known tax advisers are still
individuals respected for their skill and objectivity and often now include lawyers as
well as accountants which is not surprising given the legal nature of taxation.
The accountant was expected to stand back from the company in the shareholder's
interest to prepare accounts which in his opinion fairly stated the results of the year in
accordance with the law and in accordance with his judgement as to what was
accurate and fair. It is interesting to note, whereas the financial director of the
company is seen to be a member of the board rather than an individual in his own
Page 3
right, the appointed actuary in an insurance company is still an independent
- professional responsible not only to the shareholders and policyholders but also
directly to regulatory authorities. The actuary appears to have maintained his
independence more than the finance director in industry.
The auditor was appointed by shareholders and relied on by others to ensure that the
financial information published by a company was accurate and fair - now true and
fair - in the eyes of management and shareholders and to uphold standards of business
conduct. Historically the auditor was appointed as an individual and was respected
for his business experience, his incisive knowledge of accounting, his fairness,
robustness and integrity. In the Anglo-Saxon countries we have moved to the
position where auditors are no longer individuals but firms although thankfully in a
number of countries including France and your ovm, the individual responsible
partner for the audit still signs his own name on the audit opinion. This is a practice
which we are urging the United Kingdom to adopt through the development of the
Audit Agenda and the need to reinforce auditor objectivity for the future.
All these functions require an independence of mind, a robustness and respect, a deep
experienced knowledge of business and conceptual understanding of the accounting
framework learnt and experienced at the feet of the master. Such an ability was
caught by individuals rather than taught. Such qualities in my view can only be
absorbed by experience gained from those who have experience rather than taught by
those who have not.
Members of a professional body would take part in the training of their successors
both in the office, in student classes and in Universities. Until relatively recently, in
the 1950's, there were few recommendations on accounting or auditing practice
promoted by the institutes. Knowledge came through the professional bodies who
arranged seminal discussions between members so that each could share in others
Page 4
experience and thus advance the profession as a whole. Indeed, I can remember in
Scotland, the membership discussing different accounting and other issues and the
proceedings being published. Those proceedings and the sharing of issues with other
accountants were the main source by which the professional could increase his
judgement. I note and I envy that such still happens in the Faculty of Actuaries in
Scotland but unfortunately due to the size of our professional bodies now and the
competition between firms and individuals there is little sharing of professional
experience except inside professional firms. However at ICAS we still retain the
requirement that during student days, students are educated together within the
Institute en route to their qualification.
Perhaps it was also a feature of our own profession, that those who practised did not
rely exclusively on the fees of their practise for their livelihood nor were they
prohibited by their partners from taking part in industrial appointments of a
directorship nature. The concept of partnership was bom of the desire of
practitioners to work and share facilities and judgements in servicing their own
clients. Corporate partnerships of today are very different entities.
RECENT DEVELOPMENTS IN OUR PROFESSION
As business became more complex and through the collapse of companies with
hidden reserves in the early 1900's public criticism and the demand for openness
emerged. Legislation forced the disclosure of information in a more and more
detailed fashion and the professional bodies were forced to vmte recommendations
and rules for members to comply with. The setting of rules and legislation rather
than an in-depth review of the education and qualities required for our profession, has
been seen as the panacea of public criticism.
Page 5
So called efficiency and the need for improved profitability has forced firms to write
pre-determined audit programmes and methods of accounting which individual
practitioners can slavishly follow. These are all geared to profitability and minimise
the degree of judgement which our members require to utilise. The effect of this has
in my view denuded the profession of much of its professional judgement and
experience. I can remember even in my lifetime when I was asked to prepare
accounts and carry out an audit I had to think for myself I would use my own
judgement as to the enquiries which I had to carry out and my own judgement as to
what I feh was a true and fair presentation of the financial results of the enterprise.
Only after having done that, and perhaps having taken the objective opinion of a
fellow practitioner, would I compare the product of my judgement with the
legislation and minimalist rules which existed at that time. Nowadays practitioners I
believe go first to the accounting standards and secondly to the auditing standards
both to prepare and audit accounts, and if I am cynical, then find reasons as to why
the views of the management can be fitted into the rules. There is therefore a
complete reversal in the way some modem practitioners can be said to work.
The complexities of business forced financial management to look to professional
firms of accountants to provide them with more and more consultancy in order to
achieve their objectives. The increase in litigation and the drive for efficiency has
accelerated the need for mles and checklists to cover every conceivable aspect. We
also now have an elaborate system of check upon check, review upon review and
external review to ensure quality. It is interesting to note that the motor industry in
the United Kingdom used such quality control procedures until it died not many years
ago. It has now been resurrected with the use of modem total quality management
techniques. Those are the product of the desire for a more highly educated
workforce, the empowerment and motivation of people and an emphasis on customer
satisfaction measured through customer service rather than quality checklists.
Page 6
In the 1970's we see the dnve by industry for one firm to report worldwide. An
emergence of muhi-national companies has driven the merging of firms into large
intemational bodies. Today we see the number of intemational firms in single figures
and only six dominant in the major listed company market. There continue to be
signs also that even that six may further reduce.
THE 1980'S
The intemational firms and domestic firms started to maximise their potential in
earning fees from a wide range of services to those who are prepared to pay. Such
services dwarf the assurance services delivered in the public interest by what I might
describe as the old-fashioned professional middle man. Firms have now even
dropped the phrase Chartered Accountants and either use no designation, depending
on their own name for recognition as financial conglomerates or use the term
Business Advisors. Whilst I am sure they will all indicate that they are still
professionals the public sees it as the client interest rather than the public interest
dominating and we even find politicians addressing institutes as Trade Associations
rather than as Professional Bodies. In order to undertake the services which they
now offer, such firms employ not only accountants but those of other disciplines,
particularly when delivering the consultancy needs which industry and commerce
demand. The accountancy firms have been very successful in meeting the market's
desire for services, but perhaps at the expense of independence in the public interest.
As regard the traditional professional bodies it can be argued that they have not kept
pace with some of the core developments. Why do we see many others being formed
such as The Institute of Taxation, The Society of Insolvency Practitioners, The
Institute of Management Accountants, Public Sector Accountants and Corporate
Treasurers? Also we see the emergence of the MBA from Universities and Colleges
throughout the world and those holding such qualifications undertaking many of the
Page 7
tasks in industry and commerce which used to be the preserve of the accountant with
a broad based business experience. I do not decry in any way the establishment of
new professional bodies to meet specialist needs but it may indicate the possible
demise of the general accountancy bodies in the future unless we re assert the aspect
of professional independence and objectivity.
Public confidence in our profession in my view is declining with the scandals that are
around, the advent of lowballing and discounting of fees, competitive tendering,
opinion shopping and the growing criticism of one accountancy firm by another. I
am sure such symptoms would have never been envisaged by our forefathers when
the original bodies were formed. Might I suggest they are the symptoms of trading
which steer our public to the view that we have become Trade Associations.
Therefore as we celebrate 100 years we desperately need to take stock and assess
what we as a profession stand for in the future. Might I suggest that we were never
supposed to be all things to all men and the sooner we realise this the better. In my
view there is a place for both professions and for trade associations and whilst the
split may be a subtle one I am certain that it needs to be explored.
THE FUTURE
I question whether we as professional bodies should attempt to chase every
conceivable financial service. I am satisfied that the firms' of accountants now as
financial conglomerates may well continue to deliver every such service. The role of
the firms and that of the professional bodies may well have reached a stage where
they have to move in different directions.
In my view a profession is a group of people who value their professional skills, work
together to develop its fundamentals for the changing needs of society, train and
Pages
educate its successors and have a strong disciplinary system which removes those
who stray from the path or bring it and its fellow professionals into disrepute in the
eyes of the public. It is a profession close knit and well defined to contribute
objectively to society, putting the client always before itself and being a master of its
standards rather than the servant of its standards. A profession which will be based
on individuals as Physicians of Accounting, practising their professionalism in
practice and industry, in areas where their objectivity and knowledge are respected
more than their trading ability.
There is no reason in my view why the accountancy profession should continue to
consider that it can have a monopoly over all the services delivered by firms. History
is littered with those who built empires in only two or three generations to see them
collapse and die.
THE FUNDAMENTALS OF THE FUTURE OF THE PROFESSION AND
THE RELEVANCE OF RESEARCH
I believe we need to go back to fundamentals and examine what our core profession
should be involved in.
First and foremost, it needs to be respected for its objectivity not its trading ability. It
requires people of stature more able to say "why" or "no" rather than "how" and
"yes". It will be recognised for the quality of its people, its integrity, its education, its
research into accounting and auditing and governance, and its ability to develop its
skill to meet the needs of society as a whole.
To make the point, let me look at accounting and auditing and governance which I
believe have been the bedrock of our profession and through which our members
have been able to give objective advice and assurance in taxation matters,
Page 9
acquisitions, receiverships and independent financial advice to investors or potential
investors.
Accounts
On the subject of financial reporting might I suggest that there are those who see a
company's financial results now as "An Artistic Impression of Management's Desire" .
Financial reports have quite properly moved from being an historical record of the
intromissions of the directors, to a means of satisfaction of shareholders that the
resources of the company have been honestly utilised and used for the creation of
wealth and dividends. The demand for value based accounting and information based
on judgements of the future has lead us into a state of confusion. Modem society
now is not satisfied with a record of the past but wishes to know how much the
company is worth and its future potential. An ever increasing set of accounting
standards only achieves a fossilisation of accounting theory and does not meet the
needs of investors in a timely manner. This I believe, has lead to continual criticism
as we as a profession have not kept pace or looked forward intently deeply into
modem society's needs. Perhaps this has arisen because Research has been seen as an
academic activity on the fringe of our profession rather than as a core element of its
being and future.
Imagine for a moment what is valuable in a company - its know how, its experience
of management, its research and development into new products and services, its
integrity of its govemance, the experience and objectivity of its directors, its plans,
the motivation and education of its workforce, its share of its market and its ability to
maintain that share or to move into new markets and finally the quality of its
customer base and their satisfaction. None of those items appear in the balance sheet
and yet we try and put mathematical figures round them. In the public sector we are
Page 10
learning not to measure everything in financial terms but to measure standards of
service with non-financial measurements.
Imagine for the moment what shareholders need to know about profit. Yes, they will
be interested in historical profit but probably more from a cash flow basis and how
much they can expect in the way of dividend. Moreover, they are interested to know
what future dividends will look like, how they will be sustained and improved and
whether the company can afford them at the same time as ploughing back sufficient
for investment not into bricks and mortar but into training, research, development
and people.
Therefore, if as a profession we are to continue to be the reporter of business
information, we need to develop new skills and measurements for tomorrow's
information user, whilst having a knowledge of finance, the Physician of Accounting
will clearly need a more in-depth knowledge of economics, risks and uncertainties in
business, employee education, customer habits, information technology, people and
the law. We need to research into how the sophisticated user of information will
wish to measure success, value and probity.
Auditing
Turning to auditing, we have become transfixed on only one half of the equation.
Reporting on financial statements. Public expectations in my view go further - is the
company a going concern - is it free of fraud - is it managed properly - is there
integrity in its database - do directors have proper and adequate information to make
decisions - are there adequate controls - can "Barings" happen in their company?
Those are all matters of govemance and propriety as well as reporting. The
technology developments of super highways demand new skills of auditors if they are
to be, as I believe they will, reporters and assessors of govemance and measurements.
We need research into behavioural aspects of business, how people react in different
Page 11
situations, the checks and balances required to hamess the entrepreneur and power,
the identification of integrity and, when it is at breaking point, how it tums the honest
into the manipulator of people for the protection of pride and the masking of
incompetence.
Governance
The third development of our profession will be the independent director as the
monitor of govemance. In Japan this is translated into the board of auditors being
three experienced executives who are not directors but who attend all meetings,
assess the propriety of the directors actions and actively, all be it behind closed doors,
take the necessary action to effect change for the good of employees and
shareholders for the long term health of the company.
I can paint a scenario of the future where information will be produced not only in
financial but also non-financial terms. It will be screenbased and the public desire will
be for external assessors on the board, and intemal assessors. Extemal assessors of
the integrity of information and business conduct and intemal assessors of the
efficiency and effectiveness of systems and their adequacy and independent directors
or assessors acting on behalf of shareholders within the board to ensure proper
govemance is being observed in the shareholders and wider community interest.
Accounting in my view is about accountability - how to account, how to measure.
The profession should gear itself to the objectivity of that process whether it is an
assessment or a production of information.
The Institute of Chartered Accountants of Scotland have attempted over the past few
years to examine some of those aspects. Making corporate reports valuable was an
attempt at examining new ways of reporting. Auditing in the 21st century is about
the assessor role in the future and how we meet the public expectation which I have
Page 12
outlined in a technological based society. A project led by Nigel MacDonald on
non-financial measurement and our present work on future govemance practice are
all indicators of our drive to reach into the fiiture. I am delighted that we are
working with NIVRA on the issue of intemal control and intemal audit so necessary
if we are to find new ways of measuring the integrity of business information and I
am delighted that the Canadian Institute are examining our work on non-financial
measurement and how that can be taken forward. We will continue to forge ahead
with such projects and I know that you in Holland will do likewise.
Education and New Personal and Inter-Personal Skills
Finally, let me tum to education. In Holland as in Scotland you have prided
yourselves in your approach to education. In particular I envy your programme and
determination on Post Graduate education and the supply of researchers to take
matters forward.
A professional accountant in my definition is a long term member of our profession
who needs to have an in-depth knowledge based on a strong conceptual education
which continues through life. As a member of our profession he or she has to have a
deep understanding of business, accounting, and information technology and have an
education in subjects far wider than accounting but related to fiiture demands. I see
such education being expanded to include economics and in particular the
behavioural sciences. Might I go fiirther to suggest that he should be a physician or
doctor of accounting if he is to meet the needs of society rather than just the needs of
a particular client group. Such a physician will require a quality University Education
coupled with a post-graduate education and experience at the feet of the master.
The current trend of assuming that a person can become an accountant by learning
any skill plus two or three years of accounting is in my view a backward one and too
short. Even more so I do not believe that the current trend of learning by distance
Page 13
learning rather than at the seat of the master will provide the depth of professional
skill required for the future physician. Such accounting qualifications will continue to
be useful as business qualifications for those who want to develop their career in
industry or practice. However, such a qualification will not in my view be adequate
for the person wishing to be an independent professional assessor, either in industry
at a senior level or in practice.
Therefore might I suggest that over the next 100 years we could see the development
of small professional bodies with a focus on society's needs delivered by a core of
professionals with the interpersonal skills as well as the personal skills to share with
each other the issues to develop the objectivity based profession that society
demands. Such Physicians of Accounting will deliver in the public interest. They will
be a body of elite experienced people demanding the respect that we once held,
educated and trained at the feet of the master. In my view the capital market requires
such an objectivity based profession wdth new skills if the market is to be enhanced
and not destroyed by the urge for greed and power at the expense of others in
society.
The renewal and re-focus of our professional bodies. Ladies and Gentlemen, is not
only relevant, but crucial if we are to meet not only the desires of our forefathers but
also the desires of the society of the fiiture which I am sure we all wish to belong to.
Members of the profession require wide inter-personal skills if they are to meet the
needs of society for judgement and objective assessment services in the areas of
accounting, auditing, govemance, insolvency and management.
Perhaps in 100 years time, my successor will be speaking to the intemational
convention of the 'Physicians of Accounting' in each country and we will not be
ashamed that at the same time there may be another larger intemational conference of
trade associations of the purveyors of financially orientated customer services. Both
Page 14
are needed if the needs of the capital markets are to be met and confidence in such
markets enhanced.
Professor J P Percy, CA
Edinburgh
May 1995
The views expressed in the above paper are those personal to the writer and should
not be taken to be the views of his firm or any company of which he is a director or
his own Institute of Chartered Accountants of Scotland.
Page 15
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
'Auditsystem/2
A new generation of audit technology'
KG J. van Leeuwen
AuditSystem/2 (AS/2) is the most powerful and effective audit teamware
system ever. It is a leading-edge software system that builds on our
experience with earlier ground-breaking products that have established
Deloitte Touche Tohmatsu International as the leader in audit technology.
And it introduces a vast array of new capabilities that substantially increase
both the depth and the breadth of that technology.
The key to AS/2's capabilities is that it is built largely from "best of breed",
industry standard Windows products and Microsoft's new, leading-edge
integrating technology. Thus AS/2 provides all the tried-and-tested
functionality of earlier products plus the additional capabilities of Windows
and the building block products. AS/2 includes outstanding on-line review
capabilities, convenient "at-your-fingertips" access to information, electronic
mail and functions that greatly facilitate creative communications with clients
~ features that are especially important to senior audit management. AS/2
can be used effectively on audit engagements of all sizes - form the largest
multinational corporations to small local businesses.
AS/2 includes modules as Document Manager, workpapers, Trial Balance,
Multilocation Support, On-line Access to Information, File Interrogation and
Smart Audit Support.
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
An overview of the system will be presented fo'cusing on the Smart Audit
Support module. This module using an expert system provides the auditor
support for risk assessment, audit strategy selection, controls evaluation and
detailed audit program or industries. The demo of the system will also cover
a topic from the ahold visit. As part of the presentation people's reactions
to working with this knowledge-based tool will be discussed.
From Team Bullitin
Our Technological Advantage
Flexing time. Stretching space. Paradigm changes in what philosophers used
to refer to as "Absolutes." How could such massive changes occur in one
generation - from an historical perspective, in the blink of an eye? The
one-work answer? Technology. Innovations in computers and software have
redefined the world of work, instantaneously linking job sites around the
world and transforming a 2 a.m. bout of insomnia into a computerized
opportunity to tie up loose ends at the office.
A commitment to Technology
Nearly 10 years ago, our firm made a commitment to develop technology for
workpaper preparion, organization, and review. The result was A+, a
custom-designed audit software system introduced in 1989. We thus became
the first major accounting firm with such a system and a leader in audit
software development. In factin April 1994, Emersons's Professional
Services Review recognized our innovations in a four-page article entitled,
"Deloitte & Touche: Harnessing Audit Technology." "Until recently, our
advances in audit technology were among the best-kept secrets in the
accounting field," notes Mike Sutton, national director, accounting and
auditing professional practice. "But now, clients, non-clients, and com-
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
petitors alike are recognizing and admitting how far ahead we a in a
technological niche that gives us many competitive advantages." The number
of offices using the software has increased steadily since its introduction.
According to Trevor Stewart, national director of accounting and auditing
technology, "our U.S. offices have 85 to 90 percent of their engagements on
A+." A+ was developed for the DOS operating system, but the huge
popularity of Microsoft Windows has opened up many new opportunities for
audit software, prompting the firm to build on Windows' existing capabilities.
Led by Trevor, project teams for Princeton, Amsterdam, and London
collaborated to retool our audit technology platform for the Windows
environment. The result is a new generation of audit software called
AuditSystem/2 (AS/2), which a number of member firms, including Canada,
France, the Netherlands, the UK, and the United States, will pilot this
September.
Outstanding Features
AS/2 enhances A+'s audit capabilities by using the power of Microsoft
products such as Word for Windows, Excel, and Access, as well as other
products such as Folio VIEWS and cc:Mail. In addition to on-line review
capabilities, AS/2 includes convenient "at-your-fingertips" access to infor­mation
and features that greatly facilitate creative communications with
clients.
Specifically, AS/2 provides:
* "Document manager" for organizing and accessing electronic audit files
and for facilitating the flow of work between members of an audit team
* "Smart audit support" for audit planning and program development
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
* Workpapers that integrate word processing," spreadsheet, and graphics
* Trial balance capabilities that include consolidations, foreign currency
translations, leadsheets, and client-ready financial statements
* Database and communication capabilities to help manage multinational
and other multilocation audit engagements
* Instant on-line access to information, including Deloitte Touche
Tohmatsu International and member firm literature and comprehensive
audit planning guidance
* File interrogation for extracting and analyzing data in clients' computer
files (trial balances or sample selection, for example)
With this system, audit team members using modems can send documents
electronically from anywhere in the world - on the road, in the air, at home,
or with a client. They can create useful cross-references at any stage of the
audit and develop documents from multiple locations. The firm's capabilities
in this area have benefited our recruiting efforts. "Candidates are interested
in working for a progressive firm, and we demonstrate that ideal with this
technology," says Mark Chain, national director of recruiting and university
relations. "Students learn how to use these kinds of systems in school, and
they want to continue using them in their careers."
Roll-Out Plans
AS/2 will be used on a number of pilot engagements in 1994 and will be
rolled out aggressively starting in 1995. Individual offices have appointed
accounting and auditing technology directors to oversee the transition from
A+ to AS/2. A+ has been well received by the internal audit community,
and Trevor expects AS/2 to be even more popular.
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
On the Horizon
"The distinguishing features of our audit technologies are an unparalleled
degree of integration and a focus on supporting audit teams rather than just
individual auditors, "Trevor explains, "As a firm, our goal is to provide
technology that enables us to operate as a seamless global network of
professionals." "We have developed the most effective, integrated, and
productive Windows-based audit teamware ever, "Mike Sutton concludes.
"Now our business imperative mandates that we implement is this technology
fully throughout the firm and realize the benefits of our investment. Our
future success depends on it."
How AS/2 Works
AuditSystem/2 consiits of • numlwr of audit-sp«cif ic cora modulas constmctad
using industry-standard and propristary building bloclcs. It runs on tha Microsoft
Windows platfonn. OLE (Objoct Unking and Embadding), a kay Microsoft tach-noiogy,
is tha 'glus' that AS/2 usaa to accomplish saamlass intagration.
TABLE OF CONTENTS
FEE/IFAC 1995 Intemational Aooountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TABLE OF CONTENTS
RED TABS YELLOW TABS
GENERAL INFORMATION
OPENING CEREMONY
TABLE OF CONTENTS
CONFERENCE PROGRAMME
WELCOME FROM NIVRA
SPEAKERS AND DEBATERS
MORNING PROGRAMME INDEPENDENCE
CORPORATE GOVERNANCE/
RESPONSIBILITIES
ENVIRONMENT
ASSURANCE SERVICES
MANAGING EXPECTATIONS
INFORMATION TECHNOLOGY
FEE/IFAC 1995 International Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TABLE OF CONTENTS
(CONTINUED)
RED TABS YELLOW TABS
AFTERNOON PROGRAMME FINANCIAL INFORMATION
SOCIAL SECURITY SYSTEM/
WORKING ENVIRONMENT
EDUCATION
INTERNAL - EXTERNAL
AUDITOR/HIGH TECH AUDIT
SMALL AND MEDIUM-SIZED
ENTERPRISES
PUBLIC SECTOR
FEE/IFAC 1995 Intemational Accountant^ Conference
PEOPLE FOR PEOPLE
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THE DAY'S PROGRAMME AT A GLANCE
MORNING
PLENARY SESSION
09.00 - 09.15
Wim Moleveld
Director General, NIVRA
Opening Performance
09.15 - 09.20
Arnold Schilder
President, NIVRA
Official welcome from your host
09.20 - 09.40
Jens R^der
President, FEE
"People for People"
09.40 - 10.00
Juan Herrera
Deputy President, IFAC
"The Accountancy Profession and Care"
10.00 - 10.20
Arnold Schilder
President, NIVRA
Closing Performance
PARALLEL SESSIONS
10.30 - 12.30 Parallel Sessions 1 to 6
12.30 - 13.45 Lunch
FEE/IFAC 1995 Intemational Aooountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE DAY'S PROGRAMME AT A GLANCE
(CONTINUED)
AFTERNOON
PARALLEL SESSIONS
13.45 - 17.00 Afternoon Programmes A to F
"Meet the Society"
EVENING
19.30 - 21.00 Closing Reception offered by the Mayor
of Amsterdam - Rijksmuseum
21.00 - 23.00 Candlelight Diimer Cruise,
Amsterdam
23.00 Conference Ends
FEE/IFAC 1995 International Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TRANSLATION FACILITIES
The official language for the conference is English. During the mor­ning
parallel sessions, simultaneous translation from English into
French, and where applicable, from French into English, will be
provided in the sessions on Independence and Corporate Governance/
Responsibilities. In the case of the afternoon sessions, due to the lack
of facilities at the various locations concerned, we regret that it has not
been possible for us to provide a translation service.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TRANSPORT ARRANGEMENTS
For Friday 12 May, a special fleet of NIVRA shuttle buses will be
available to transport participants (free of charge) to and from the
various locations during the course of the afternoon and evening. Car
parking facilities have been reserved at the RAI Congress Centre for
the whole day until 1.00 hrs (1 am Saturday morning).
For the afternoon sessions, the shuttle buses will transport participants
from the Congress Centre to the respective locations in and around
Amsterdam. The shuttle buses will be marked with the name of the
session as their destination so participants should ensure that they
travel on the right bus.
The shuttle buses will return participants to their hotel or to the
Congress Centre, arriving back at approximately 17.30 hrs. These
buses will call at each of the conference hotels on their way back to
the Congress Centre, so allowing participants to return to their hotels
for a short rest prior to the evening programme, should they so wish.
Alternatively, participants not wishing to return to their own hotel or
to the Congress Centre, will be able to enjoy light refreshments at the
Okura hotel before leaving for the party in the evening.
For the evening programme, the shuttle buses will transport parti­cipants
from the RAI Congress Centre, their hotel or the Okura hotel,
depending on where they rested after the afternoon sessions, to the
Rijksmuseum for the evening reception. The shuttle buses will return
participants to their hotels or the RAI Congress Centre at the end of
the evening.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
ACCOMPANYING PERSONS'
PROGRAMME
With its six million flower bulbs in a setting of ancient trees, splendid
ponds, flowering shrubs and large variety of perennials, Keukenhof is
rightly called the "Spring Garden of Europe". The overwhelming
beauty of Keukenhof in bloom must be experienced to be believed.
Moreover Keukenhof has three pavilions so that in the months of April
and May successive shows can be seen.
Those joining this programme will be treated to the opening of the lily-show,
according to some the most beautiful of all the flower shows. As
an extra attraction, this excursion takes you first along a scenic route
through the Dutch coastal areas behind the dunes. Then on to the "sea
of flowers" near Lisse. You will be given ample opportunity to stroll at
leisure through this huge flowerpark and will enjoy a delicious lunch
overlooking the lily-show.
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE EVENING PROGRAMME
From 19.00 to 20.00 hours the Mayor of Amsterdam will offer the
participants and their partners a closing reception in the Rijksmuseum
under the watching eyes of Rembrandt's Nightwatch.
The Mayor will be represented by the Alderman of the Amsterdam
Council, Mr. de Grave, who is responsible for financial affairs in the
Council. There will be no speeches during the reception owing to the
poor acoustics but participants will be able to make a guided tour of
the building.
This reception will be followed by a candlelight dinner cruise mean­dering
along the canals of Amsterdam.
WELCOME FROM NIVRA
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
WELCOME MESSAGE FROM NIVRA
To the participants of the FEE/IFAC Conference
Amsterdam, 12 May 1995
Dear friends and colleagues,
It is our great pleasure as hosts of the FEE/IFAC conference to
welcome you. Participants from as many as 40 countries have regis­tered
for this congress. We are pleased and rather proud that col­leagues
from so many countries are willing to come to our country.
For some of you this is an opportunity to renew old acquaintances but
for many it represents your first visit to our country. We hope this
visit will be a pleasurable experience and that we will succeed in
making you feel at home with us.
As a country which has built its prosperity and reputation on inter­national
trade over very many years, the Netherlands have always
placed great emphasis on doing business in foreign countries; for this
reason, international relations have always been held in high regard by
the Dutch people. The smaller you are, the bigger the rest of the
world! This strong international orientation is also adopted by the
Dutch accountancy profession.
Dutch accountants have maintained a strong international perspective
from the very beginning. We therefore feel privileged that FEE and
IFAC have decided to hold this conference in our country in the week
of the celebration of the centenary of NIVRA, and that the Council of
IFAC and the Board of lASC, as well as the Public Sector Committee
of IFAC, chose to meet this week in Amsterdam.
FEE/IFAC 1995 International Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
The theme "People for People" has been chosen for the jubilee cele­bration
as well as for the FEE/IFAC conference. This theme expresses
the essence of the accountancy profession: a profession which is
practised by people for people and by people working with each other.
It is from this perspective that present day issues facing the accountan­cy
profession will be discussed. In close collaboration with FEE and
IFAC and their respective committee chairpersons, we have put
together a programme which addresses some of the most important
subjects on the agendas of FEE and IFAC. This programme therefore
offers participants an opportunity not only to be informed about these
important issues but also to make a direct contribution to them and to
the FEE and IFAC policy-making process.
On behalf of NIVRA, we would like to wish you a productive con­ference
and an enjoyable stay in the Netherlands.
Arnold Schilder
President NIVRA
Wim Moleveld
Director General NIVRA
Ai ^ ^^ kd^^-^'"-
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE CONFERENCE THEME:
PEOPLE FOR PEOPLE
The theme for this International Accountancy Conference, which
coincides with the NIVRA 100 celebrations, is "People for People". In
the various technical and social events which are offered to partici­pants,
we have sought to place emphasis on the people aspect of
accountancy, both in terms of a profession that cares for society and
one which works together with other professions and disciplines for the
benefit of the business client and society in general. In essence,
"People for People" is intended to highlight the important interrelati­onships
that exist between: the service expectations of the people we
serve; the process by which we communicate in attempting to meet
those expectations; and, the inherent and related technical issues
involved.
We all recognise that information has become a key commodity in the
world today. It is the commodity to which the accountancy profession
adds value. Our profession's standing in the community depends to a
very large extent upon the reliability and integrity of the information
on which the accountant provides an independent expert's opinion,
notwithstanding the fact that the preparer of the information has first
and foremost responsibilities. Therefore, independence is the bedrock
on which the profession's ability to lend credibility to information rests.
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
As the demands for information increase, both in terms of the speed at
which it is made available and in terms of the volume and complexity
of information, is there a possibility that we may become too concerned
with the mere act of communication at the expense of caring for the
way in which that information is perceived and understood?
Most of those attending the conference will be aware of the increasing
variety and complexity of professional and business life. We find
ourselves having to cope with a growing body of rules, regulations,
standards and procedures which have added to and complicated the
pace and pressure of our working day. How, we might ask ourselves, is
this drift towards a more regulated and technical profession, in areas
such as responsibilities, affecting the human aspects of serving client
expectations and of communication? The means by which the different
groups in society communicate with each other has changed, and will
continue to change, dramatically as a result of improvements in infor­mation
technology. But is there a danger that we may overlook the
behavioural aspects?
If the profession is to meet the needs and expectations of those it
exists to serve, it must understand and recognise the behavioural
aspects of communication, including such matters as empathy, percepti­ons,
beliefs and interpretations.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
Technology is an aid to the process of communication but are we
inclined to place too much emphasis on the machine rather than on the
message and on how that message is perceived and used? Does
greater consideration need to be given to the fact that it is people that
take decisions not machines and that it is people that interpret and act
on the information?
The communication of information does not end with the mere act of
supply. There is the wider social responsibility that goes with the act
of communication which involves more than simply ensuring that all the
rules, regulations, procedures have been properly and meticulously
performed and complied with. Arguably, it extends beyond this to the
wider social role of ensuring that information is properly understood
and that wrong decisions are not made simply because the message was
misunderstood.
These sort of questions need to be addressed. We hope that the con­ference
will provide an opportunity to do so. As accountants continue
to diversify into new areas of work which involve an increasing reliance
on the work of other disciplines and professions, we will become more
aware of the different values and perspectives which exist in society,
hopefully engendering a greater appreciation of the need to understand
more about the people we work with and the people we serve.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
ACKNOWLEDGEMENTS
Acknowledgements to
ABN AMRO Bank NV
Akzo Nobel
for their financial support
And to
Kamer van Koophandel Amsterdam
Koninklijke Ahold NV
Social Verzekeringsbank
Universiteit Nijenrode
Vereniging voor de Effectenhandel
Deloitte & Touche Accountants
KPMG Accountants
VB Accountants
for their support in organising the visits in the setting of 'Meet the Society'
on Friday afternoon 12 May 1995.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
NIVRA-100 ORGANISING COMMITTEE
Prof. Andre Bindenga (Chairman)
Lex Bolwerk
Wim de Bruijn
Sybren Kalkman
Wim Moleveld
Prof. Arnold Schilder
Henk Volten
Frans Quax (Secretary)
FEE/IFAC 1995 Intemational Accnantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
CONFERENCE PROGRAMME GROUP
NIVRA-100 Project Management Group:
Wim Moleveld
Chris Hibbitt
Kinga Kolczonay
Dorien Michels
Frans Quax
Marieke Viergever
Virginia Wright
NIVRA Publicity:
Mariëtte Nelissen
Eurocongres:
Mariëtte Helmann
SPEAKERS AND DEBATERS
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
SPEAKERS AND DEBATERS
ROGER ADAMS (UK)
Debater, Environment
Roger Adams is Technical and Research Director
for the Chartered Association of Certified Accoun­tants
(ACCA) - one of the six main UK accounting
bodies. A Chartered Accountant, Mr. Adams is an
experienced lecturer and author of a popular UK
auditing textbook. He is also a member of the
FEE Environmental Task force.
As Head of Research at ACCA he was responsible
for commissioning the first major research study
analyzing the role of the accounting profession in respect of environ­mental
issues. This report. The Greening of Accountancy by Professor
Rob Gray was published in 1990 and has achieved world-wide recog­nition.
In 1991 Mr. Adams initiated the ACCA Environmental Repor­ting
Award Scheme, a scheme which has become the model for similar
schemes in Denmark and Canada. The awards for 1994 were presen­ted
in London on Tuesday 28 February 1995 and for the first time,
included awards to non-UK companies.
ANTON CARL ALBERTS (Netherlands)
Speaker, Social Security [Working Environment
Anton Carl Alberts (Ton Alberts) was born in 1927
in Berghem, Belgium. He studied architecture at
the School of Fine Arts in Paris and at the Aca­demy
of Architecture in Amsterdam, where he then
taught for over twenty years. In searching for a
cure to a serious illness he had as a young man,
Mr. Alberts was introduced to Hatha Yoga and
then to esoteric philosophies, which have become a
life-long study. Through many years of architec­tural
experience, searching to express esoteric prin­ciples
in his work, he developed his interpretation of "Organ Architec­ture".
This is a process which attempts to bring matter-through form,
material and colour - into closer harmony with mankind. His office,
now Architectenbureau Alberts & Van Huut, has worked along these
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
principles since 1964. Some of the best examples of this are the ING
Bank (formerly NMB Bank) in Amsterdam Zuidoost, KPMG building in
Amstelveen and the Gasunie in Groningen.
PROFESSOR AAD D. BAC (Netherlands)
Host, Public Sector
Professor Aad Bac is a partner in VB Accountants
and Professor of Government Accountancy at Til-burg
University. He is a member of the NIVRA
Steering Group for Government and Not-for-Profit
Organisations of Voortgezette Educatie Register
Accountants (VERA), the NIVRA body responsible
for continuing professional education of Dutch
Accountants. Previously, he held the posts of assis­tant
professor and associate professor for Admini­strative
and Accounting Organisation and Informa­tion
Technology at Erasmus University, Rotterdam. Professor Bac has
over 30 years of experience in the accountancy profession, particularly
in government accountancy, a field in which his firm has specialised for
80 years. He is author of several books and articles on government
accountancy and government financial management.
KENNETH A. BIGGS (Canada)
Key speaker. Managing Expectations
Kenneth Biggs is chairman of the Financial and
Management Accounting Committee of IFAC. He
was an active member of the Society of Manage­ment
Accountants of Canada over many years,
holding the office of President in the period 1973
to 1974. Retiring from business in 1993, Mr. Biggs
remains involved in activities related to the accoun­ting
profession and also serves as a Director of
EdTel, a telecommunications company. Prior to his
retirement, Mr. Biggs held a number of positions in
varied businesses including President of Unicare Integrated Software
Inc. (healthcare software business) and President of QCTV (an Alberta
-based cable TV company). He has also served as Snr Vice-President
and Director of Canadian Utilities Limited.
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
RANDY C. BILLING (Canada)
Key speaker, Environment
Randy Billing is President of Ernst & Young Envi­ronmental
Services Inc. He is a member of the
International Organization for Standardization
(ISO) 207 Committee 'Environmental Management'
and of both the Environmental Auditing (EA) and
Environmental Management System (EMS) sub­committees
of ISO 207. He is also Chairman of
the Canadian Standards Association (CSA) Com­mittee
on environmental auditing, which published
its first standard on general principles and practices
in January 199

I'^izl
^23 ^£& Iqq'^ b
ILANDS INS
BlBUOIrtciïK
O m
z
m
>
-n
O
J3
o
^*/.<5^dfi;?im funds supplied by the national government.
Everyone w^o has an income in the Netherlands
pays AOW/AWW contribution. The Dutch tax
authorities collect these contributions and add them
to the various funds from which the AOW and AWW
pensions are paid. The national govenunent allocates
funding for child benefit and some funding for the
AWW. The SVB controls these funds.
With over four million clients, some 35 million
payment transactions each year and a data storage
file for over 10 million persons, a well-versed auto­mation
department is definitdy a must. It will come
as no surprise that the SVB has a large computer
centre with links to all distria offices.
The head office is also responsible for the implemen­tation
of the FVP scheme. The FVP scheme aUows
unemployed persons aged 40 and over to continue to
acoue supplementary pension rights temporarily
without contributions firom themsdves or their
former employers. Under this scheme the FVP fimd
pays contributions for supplementary pension insur­ance
for certain groups of unemployed persons so
that their future pensions are not adversely affieaed.
BETTER AND FASTER SERVICE FROM THE
SVB
The SVB has changed gready since it was founded
over 90 years ago. The most recent example is the
radical change in the organisational structure; cur-rendy
important developments are under way in the
field of automation. This is necessary to make our
service to you, our client or future client, even bener
and faster.
Sooner or later, almost everyone who has ever lived
or worked in the Netherlands will have something to
do with the SVB. This aeates obligations: the SVB
must provide the best possible service to all its
clients. Commitment and a client-oriented attimde
can help to achieve this. But it means more than
prompt payment of pension and child benefit. It also
means optimising the flow of information between
clients and the SVB. With feedback fix)m its dients,
the SVB can continually work to improve its services
- which is ultimatdy in the interests of all.
The Insurance Office registers periods of AOW
insurance coverage and advises the distria offices
and the Intemational office on the assessment of
insurance records. These records allow the SVB to
establish the rate at which AOW pension will be
paid. Upon request, this department also provides
statements showing periods of insurance coverage
under the AOW. This is important for foreigners
w^o return to their country of birth, for instance.
This department also implements voluntary AOW/
AWW insurance. A person who moves to another
country or takes up work abroad is usually no longer
insured under the AOW and AWW. In that case the
insurance can be continued on a voluntary basis, so
that AOW pension continues to be built up and
fiiture entidement to AWW is not adversely affeaed.
Addresses and telephone numbers SVB
District Offices
Alkmaar
Amersfoort
forAOW
for AWW
for AKW
Amsterdam
Amhem
Assen
Breda
Den Haag
Dordrecht
Eindhoven
Groningen
for AOW/AWW
forAKW
Haariem
forAKW
Hengdo
for AOW/AWW
's-Hertogenbosch
Leeuwarden
forAKW
Leiden
Maastricht
Aiiddelbuig
072-192222
033-769911
033-769876
033-769877
033-769882
020-5600911
085-520911
05920-20911
076-289911
070-3709000
078-332899
040-455005
050-223666
023-319488
023-152152
074-494949
074-494881
073-125141
058-947234
058-947200
071-458311
043-821666
01180-91100
Rogier van der Weijdestraat 4
Postbus 30504
ISOO EB Alkmaar
StadsringlSl
Postbus 4100
3800 EC Amersfoort
Rhijnspoorplein 1
Postbus 41808
1009 DA Amsterdam
Oude Kraan 72
Postbus 9055
6800 GV Amhem
Stationsstraat 30-32
Postbus 30006
9400 RA Assen
Markendaalseweg 35
Postbus 90151
4800 RC Breda
Laan van Meerdervoort 55 R
Postbus 29732
2502 LS Den Haag
Spuiboulevard 100
Postbus 7001
3300 GA Dordrecht
Wal 28
Postbus 90000
5600 PA Eindhoven
Leonard Springerlaan 7
Postbus 576
9700 AN Groningen
Postbus 458
9700 AL Groningen
Stationsplein 90
Staten Bolwerk I
Postbus 1641
2003 BR Haariem
W. ten Catestraat 59
Postbus 5050
7550 GG Hengelo
Nieuwsuaat 79
Postbus 90156
5200 MH 's-Hertogenbosch
Tessdschadestraat 5
Postbus 2401
8901JK Leeuwarden
Hoge Rijndijk 306
Postbus 9104
2300 PC Leiden
Gaetano Martinolaan 75
Postbus 1917
6201 BX Maastricht
Segeerssingel 10
Postbus 6003
4330 LA Middelburg
4
Nijmegen
Rotterdam
Utrecht
for AOW/AWW
forAKW
Venlo
Zwolle
for AOW/AWW
forAKW
080-279799
010-4688800
030-9297J1
030-929799
030-929788
077-557333
038-298911
038-298789
038-298888
Nassausmgel 3
Postbus 9032
6500 JN Nijmegen
Schepenstraat 100
Postbus 70025
3000 LG Rotterdam
Moeder Teresalaan 100
Postbus 18002
3501 CA Utrecht
Nassaustraat 36
Postbus 1911
5900 BX Venlo
Zamenhofsihgd 23
Postbus 10056
SOOOGBZwoUe
Intemational Office (for people living outside the Netherlands)
Amsterdam 020-5400400 Van Leyenberghlaan 221
Postbus 7105
1007 JC Amsterdam
Insiu'ance Office
Amstdveen 020-6565656 Van Heuven Goedhartlaan 1
Postbus 357
1180 AJ Amstdveen
Head Office
Amstdveen 020-6565656 Van Heuven Goedhardaan 1
Postbus 1100
1180 BH Amstdveen
5
EC Member States Countries with which
the Netherlands has a
Social Security Convention
Belgium Australia
Derunark Canada
Germany Israd
France former Yugoslavian Republic
Greece Cape Verde Islands
Ireland Morocco
Italy New Zealand
Luxembourg Norway
the Netherlands Austria
Pormgal Tunisia
Spain Turkey
United Kingdom United States of America
Sweden
Switzerland
Uitgave: Stafbureau In- en Externe Betrekkingen
Van Heuven Goedhartlaan 1, Postbus 1100
1180 BH Amstelveen
februari 1993
6
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE RELEVANCE OF RESEARCH IN THE DEVELOPMENT OF
INTERPERSONAL SKILLS FOR ACCOUNTANTS
PROFESSOR J. P. PERCY
THE RELEVANCE OF RESEARCH IN THE DEVELOPMENT OF
INTERPERSONAL SKILLS FOR ACCOUNTANTS
INTRODUCTION
I should like to add my congratulations to NIVRA on this Centenary and to the
imagination in entitling this conference "People For People". Lying behind that title
is a deep acknowledgement of professionals as people which I believe was in the
minds of our forefathers when our Institutes were formed in the last century.
In such academic surroundings and in a country which has always valued its research
and education I am sure you would not expect me to answer the question I have been
given by merely listing out a set of interpersonal skills that the accountant presently
needs. It is my intention to be deliberately provocative and to paint a picture of our
history, the present problems of the profession and the fiiture, which I hope will
provoke our leaders into thought and hopefiiUy action. I will argue that new personal
skills are required for our members in the fiiture and suggest that our profession may
divide into "Physicians of Accounting" and Trade Associations. I do not expect
those who read this paper or listen to its delivery to agree with all the points I make
but I do hope that the seeds will settle and fertilise in their minds so that in a hundred
years fi"om now we can examine the enhancement of our profession rather than the
reasons why it destroyed itself by not meeting the needs of society. The question as
to the relevance of research I will treat as rhetorical. You would not expect an
honorary professor and chairman of the Research Committee of The Institute of
Chartered Accountants of Scotland to argue in any way that research was not
relevant.
Page 1
As you will see from this paper I believe that research should have a purpose which is
not surprising given my practical upbringing. I am an avid believer in the need for a
more developed highway of communication between the academic researcher and the
practical leaders of our profession if we are to harness the research and use it as a
means of forging ahead to meet the needs of society in the fiiture.
HISTORY
Let me first examine the past and where the profession of accounting presently finds
itself before looking to the fiiture.
As I have said, today we celebrate a Centenary, but we are young. Indeed The
Institute of Chartered Accountants of Scotland as the oldest body only goes back 140
years. I bow to the fact that Dutch accountants played an important role in banking
as far back as 1695 supplying information to The Bank of Scotland prior to the union
of Parliaments in 1707. The link between our countries is an important one and it is a
privilege to be here with you today. However 100 years or so is a short time and we
know from Pacioli that the concept of double entry book keeping goes back even
fiirther to 1494 and indeed you can go fiirther back to a reference to auditing in
Roman times, the word coming from the Latin, meaning to listen or to hear.
The formation of professional bodies for accountants however is relatively new over
1800 years after the birth of Christ. We are therefore only looking at bodies perhaps
three generations old. They were enshrined in order to protect the name of
accountancy and created so that those who belonged to them could produce the
highest standards of professional independent opinion in the public interest. The
formation therefore arose from the need for independent business people normally
found amongst accountants with, a legal background, to arbitrate and advise on
Page 2
matters independent of those who managed. Typical services were insolvency,
taxation, accounting and auditing.
The insolvency practitioner was appointed by the courts to independently rearrange
the assets of the company following management's failure, in the interests of those
independent of management ie creditors, banks and shareholders. They often
reconstructed the company into an ongoing differently shaped business which would
also protect the continuing interests of at least some of the employees and maintain a
service to the community where this was seen to be still required. Such practitioners
required a wide experience of business and knowledge of accounting, a toughness, an
independence and considerable interpersonal skills to achieve their objective. It is
interesting to note that still today individuals and not firms are appointed to such
positions even though those individuals require considerable back-up from their
firms.
The tax practitioner was noted for his ability to identify wdthin the tax laws of the
country, the quantum of taxation payable by a company and to agree this with the tax
authorities. Whilst interpreting the tax laws in the particular circumstances of that
company the accountant was seen as the objective middle man respected for a
professionalism which went largely unchallenged. To this day, even though firms are
appointed as tax advisors to companies, the key well known tax advisers are still
individuals respected for their skill and objectivity and often now include lawyers as
well as accountants which is not surprising given the legal nature of taxation.
The accountant was expected to stand back from the company in the shareholder's
interest to prepare accounts which in his opinion fairly stated the results of the year in
accordance with the law and in accordance with his judgement as to what was
accurate and fair. It is interesting to note, whereas the financial director of the
company is seen to be a member of the board rather than an individual in his own
Page 3
right, the appointed actuary in an insurance company is still an independent
- professional responsible not only to the shareholders and policyholders but also
directly to regulatory authorities. The actuary appears to have maintained his
independence more than the finance director in industry.
The auditor was appointed by shareholders and relied on by others to ensure that the
financial information published by a company was accurate and fair - now true and
fair - in the eyes of management and shareholders and to uphold standards of business
conduct. Historically the auditor was appointed as an individual and was respected
for his business experience, his incisive knowledge of accounting, his fairness,
robustness and integrity. In the Anglo-Saxon countries we have moved to the
position where auditors are no longer individuals but firms although thankfully in a
number of countries including France and your ovm, the individual responsible
partner for the audit still signs his own name on the audit opinion. This is a practice
which we are urging the United Kingdom to adopt through the development of the
Audit Agenda and the need to reinforce auditor objectivity for the future.
All these functions require an independence of mind, a robustness and respect, a deep
experienced knowledge of business and conceptual understanding of the accounting
framework learnt and experienced at the feet of the master. Such an ability was
caught by individuals rather than taught. Such qualities in my view can only be
absorbed by experience gained from those who have experience rather than taught by
those who have not.
Members of a professional body would take part in the training of their successors
both in the office, in student classes and in Universities. Until relatively recently, in
the 1950's, there were few recommendations on accounting or auditing practice
promoted by the institutes. Knowledge came through the professional bodies who
arranged seminal discussions between members so that each could share in others
Page 4
experience and thus advance the profession as a whole. Indeed, I can remember in
Scotland, the membership discussing different accounting and other issues and the
proceedings being published. Those proceedings and the sharing of issues with other
accountants were the main source by which the professional could increase his
judgement. I note and I envy that such still happens in the Faculty of Actuaries in
Scotland but unfortunately due to the size of our professional bodies now and the
competition between firms and individuals there is little sharing of professional
experience except inside professional firms. However at ICAS we still retain the
requirement that during student days, students are educated together within the
Institute en route to their qualification.
Perhaps it was also a feature of our own profession, that those who practised did not
rely exclusively on the fees of their practise for their livelihood nor were they
prohibited by their partners from taking part in industrial appointments of a
directorship nature. The concept of partnership was bom of the desire of
practitioners to work and share facilities and judgements in servicing their own
clients. Corporate partnerships of today are very different entities.
RECENT DEVELOPMENTS IN OUR PROFESSION
As business became more complex and through the collapse of companies with
hidden reserves in the early 1900's public criticism and the demand for openness
emerged. Legislation forced the disclosure of information in a more and more
detailed fashion and the professional bodies were forced to vmte recommendations
and rules for members to comply with. The setting of rules and legislation rather
than an in-depth review of the education and qualities required for our profession, has
been seen as the panacea of public criticism.
Page 5
So called efficiency and the need for improved profitability has forced firms to write
pre-determined audit programmes and methods of accounting which individual
practitioners can slavishly follow. These are all geared to profitability and minimise
the degree of judgement which our members require to utilise. The effect of this has
in my view denuded the profession of much of its professional judgement and
experience. I can remember even in my lifetime when I was asked to prepare
accounts and carry out an audit I had to think for myself I would use my own
judgement as to the enquiries which I had to carry out and my own judgement as to
what I feh was a true and fair presentation of the financial results of the enterprise.
Only after having done that, and perhaps having taken the objective opinion of a
fellow practitioner, would I compare the product of my judgement with the
legislation and minimalist rules which existed at that time. Nowadays practitioners I
believe go first to the accounting standards and secondly to the auditing standards
both to prepare and audit accounts, and if I am cynical, then find reasons as to why
the views of the management can be fitted into the rules. There is therefore a
complete reversal in the way some modem practitioners can be said to work.
The complexities of business forced financial management to look to professional
firms of accountants to provide them with more and more consultancy in order to
achieve their objectives. The increase in litigation and the drive for efficiency has
accelerated the need for mles and checklists to cover every conceivable aspect. We
also now have an elaborate system of check upon check, review upon review and
external review to ensure quality. It is interesting to note that the motor industry in
the United Kingdom used such quality control procedures until it died not many years
ago. It has now been resurrected with the use of modem total quality management
techniques. Those are the product of the desire for a more highly educated
workforce, the empowerment and motivation of people and an emphasis on customer
satisfaction measured through customer service rather than quality checklists.
Page 6
In the 1970's we see the dnve by industry for one firm to report worldwide. An
emergence of muhi-national companies has driven the merging of firms into large
intemational bodies. Today we see the number of intemational firms in single figures
and only six dominant in the major listed company market. There continue to be
signs also that even that six may further reduce.
THE 1980'S
The intemational firms and domestic firms started to maximise their potential in
earning fees from a wide range of services to those who are prepared to pay. Such
services dwarf the assurance services delivered in the public interest by what I might
describe as the old-fashioned professional middle man. Firms have now even
dropped the phrase Chartered Accountants and either use no designation, depending
on their own name for recognition as financial conglomerates or use the term
Business Advisors. Whilst I am sure they will all indicate that they are still
professionals the public sees it as the client interest rather than the public interest
dominating and we even find politicians addressing institutes as Trade Associations
rather than as Professional Bodies. In order to undertake the services which they
now offer, such firms employ not only accountants but those of other disciplines,
particularly when delivering the consultancy needs which industry and commerce
demand. The accountancy firms have been very successful in meeting the market's
desire for services, but perhaps at the expense of independence in the public interest.
As regard the traditional professional bodies it can be argued that they have not kept
pace with some of the core developments. Why do we see many others being formed
such as The Institute of Taxation, The Society of Insolvency Practitioners, The
Institute of Management Accountants, Public Sector Accountants and Corporate
Treasurers? Also we see the emergence of the MBA from Universities and Colleges
throughout the world and those holding such qualifications undertaking many of the
Page 7
tasks in industry and commerce which used to be the preserve of the accountant with
a broad based business experience. I do not decry in any way the establishment of
new professional bodies to meet specialist needs but it may indicate the possible
demise of the general accountancy bodies in the future unless we re assert the aspect
of professional independence and objectivity.
Public confidence in our profession in my view is declining with the scandals that are
around, the advent of lowballing and discounting of fees, competitive tendering,
opinion shopping and the growing criticism of one accountancy firm by another. I
am sure such symptoms would have never been envisaged by our forefathers when
the original bodies were formed. Might I suggest they are the symptoms of trading
which steer our public to the view that we have become Trade Associations.
Therefore as we celebrate 100 years we desperately need to take stock and assess
what we as a profession stand for in the future. Might I suggest that we were never
supposed to be all things to all men and the sooner we realise this the better. In my
view there is a place for both professions and for trade associations and whilst the
split may be a subtle one I am certain that it needs to be explored.
THE FUTURE
I question whether we as professional bodies should attempt to chase every
conceivable financial service. I am satisfied that the firms' of accountants now as
financial conglomerates may well continue to deliver every such service. The role of
the firms and that of the professional bodies may well have reached a stage where
they have to move in different directions.
In my view a profession is a group of people who value their professional skills, work
together to develop its fundamentals for the changing needs of society, train and
Pages
educate its successors and have a strong disciplinary system which removes those
who stray from the path or bring it and its fellow professionals into disrepute in the
eyes of the public. It is a profession close knit and well defined to contribute
objectively to society, putting the client always before itself and being a master of its
standards rather than the servant of its standards. A profession which will be based
on individuals as Physicians of Accounting, practising their professionalism in
practice and industry, in areas where their objectivity and knowledge are respected
more than their trading ability.
There is no reason in my view why the accountancy profession should continue to
consider that it can have a monopoly over all the services delivered by firms. History
is littered with those who built empires in only two or three generations to see them
collapse and die.
THE FUNDAMENTALS OF THE FUTURE OF THE PROFESSION AND
THE RELEVANCE OF RESEARCH
I believe we need to go back to fundamentals and examine what our core profession
should be involved in.
First and foremost, it needs to be respected for its objectivity not its trading ability. It
requires people of stature more able to say "why" or "no" rather than "how" and
"yes". It will be recognised for the quality of its people, its integrity, its education, its
research into accounting and auditing and governance, and its ability to develop its
skill to meet the needs of society as a whole.
To make the point, let me look at accounting and auditing and governance which I
believe have been the bedrock of our profession and through which our members
have been able to give objective advice and assurance in taxation matters,
Page 9
acquisitions, receiverships and independent financial advice to investors or potential
investors.
Accounts
On the subject of financial reporting might I suggest that there are those who see a
company's financial results now as "An Artistic Impression of Management's Desire" .
Financial reports have quite properly moved from being an historical record of the
intromissions of the directors, to a means of satisfaction of shareholders that the
resources of the company have been honestly utilised and used for the creation of
wealth and dividends. The demand for value based accounting and information based
on judgements of the future has lead us into a state of confusion. Modem society
now is not satisfied with a record of the past but wishes to know how much the
company is worth and its future potential. An ever increasing set of accounting
standards only achieves a fossilisation of accounting theory and does not meet the
needs of investors in a timely manner. This I believe, has lead to continual criticism
as we as a profession have not kept pace or looked forward intently deeply into
modem society's needs. Perhaps this has arisen because Research has been seen as an
academic activity on the fringe of our profession rather than as a core element of its
being and future.
Imagine for a moment what is valuable in a company - its know how, its experience
of management, its research and development into new products and services, its
integrity of its govemance, the experience and objectivity of its directors, its plans,
the motivation and education of its workforce, its share of its market and its ability to
maintain that share or to move into new markets and finally the quality of its
customer base and their satisfaction. None of those items appear in the balance sheet
and yet we try and put mathematical figures round them. In the public sector we are
Page 10
learning not to measure everything in financial terms but to measure standards of
service with non-financial measurements.
Imagine for the moment what shareholders need to know about profit. Yes, they will
be interested in historical profit but probably more from a cash flow basis and how
much they can expect in the way of dividend. Moreover, they are interested to know
what future dividends will look like, how they will be sustained and improved and
whether the company can afford them at the same time as ploughing back sufficient
for investment not into bricks and mortar but into training, research, development
and people.
Therefore, if as a profession we are to continue to be the reporter of business
information, we need to develop new skills and measurements for tomorrow's
information user, whilst having a knowledge of finance, the Physician of Accounting
will clearly need a more in-depth knowledge of economics, risks and uncertainties in
business, employee education, customer habits, information technology, people and
the law. We need to research into how the sophisticated user of information will
wish to measure success, value and probity.
Auditing
Turning to auditing, we have become transfixed on only one half of the equation.
Reporting on financial statements. Public expectations in my view go further - is the
company a going concern - is it free of fraud - is it managed properly - is there
integrity in its database - do directors have proper and adequate information to make
decisions - are there adequate controls - can "Barings" happen in their company?
Those are all matters of govemance and propriety as well as reporting. The
technology developments of super highways demand new skills of auditors if they are
to be, as I believe they will, reporters and assessors of govemance and measurements.
We need research into behavioural aspects of business, how people react in different
Page 11
situations, the checks and balances required to hamess the entrepreneur and power,
the identification of integrity and, when it is at breaking point, how it tums the honest
into the manipulator of people for the protection of pride and the masking of
incompetence.
Governance
The third development of our profession will be the independent director as the
monitor of govemance. In Japan this is translated into the board of auditors being
three experienced executives who are not directors but who attend all meetings,
assess the propriety of the directors actions and actively, all be it behind closed doors,
take the necessary action to effect change for the good of employees and
shareholders for the long term health of the company.
I can paint a scenario of the future where information will be produced not only in
financial but also non-financial terms. It will be screenbased and the public desire will
be for external assessors on the board, and intemal assessors. Extemal assessors of
the integrity of information and business conduct and intemal assessors of the
efficiency and effectiveness of systems and their adequacy and independent directors
or assessors acting on behalf of shareholders within the board to ensure proper
govemance is being observed in the shareholders and wider community interest.
Accounting in my view is about accountability - how to account, how to measure.
The profession should gear itself to the objectivity of that process whether it is an
assessment or a production of information.
The Institute of Chartered Accountants of Scotland have attempted over the past few
years to examine some of those aspects. Making corporate reports valuable was an
attempt at examining new ways of reporting. Auditing in the 21st century is about
the assessor role in the future and how we meet the public expectation which I have
Page 12
outlined in a technological based society. A project led by Nigel MacDonald on
non-financial measurement and our present work on future govemance practice are
all indicators of our drive to reach into the fiiture. I am delighted that we are
working with NIVRA on the issue of intemal control and intemal audit so necessary
if we are to find new ways of measuring the integrity of business information and I
am delighted that the Canadian Institute are examining our work on non-financial
measurement and how that can be taken forward. We will continue to forge ahead
with such projects and I know that you in Holland will do likewise.
Education and New Personal and Inter-Personal Skills
Finally, let me tum to education. In Holland as in Scotland you have prided
yourselves in your approach to education. In particular I envy your programme and
determination on Post Graduate education and the supply of researchers to take
matters forward.
A professional accountant in my definition is a long term member of our profession
who needs to have an in-depth knowledge based on a strong conceptual education
which continues through life. As a member of our profession he or she has to have a
deep understanding of business, accounting, and information technology and have an
education in subjects far wider than accounting but related to fiiture demands. I see
such education being expanded to include economics and in particular the
behavioural sciences. Might I go fiirther to suggest that he should be a physician or
doctor of accounting if he is to meet the needs of society rather than just the needs of
a particular client group. Such a physician will require a quality University Education
coupled with a post-graduate education and experience at the feet of the master.
The current trend of assuming that a person can become an accountant by learning
any skill plus two or three years of accounting is in my view a backward one and too
short. Even more so I do not believe that the current trend of learning by distance
Page 13
learning rather than at the seat of the master will provide the depth of professional
skill required for the future physician. Such accounting qualifications will continue to
be useful as business qualifications for those who want to develop their career in
industry or practice. However, such a qualification will not in my view be adequate
for the person wishing to be an independent professional assessor, either in industry
at a senior level or in practice.
Therefore might I suggest that over the next 100 years we could see the development
of small professional bodies with a focus on society's needs delivered by a core of
professionals with the interpersonal skills as well as the personal skills to share with
each other the issues to develop the objectivity based profession that society
demands. Such Physicians of Accounting will deliver in the public interest. They will
be a body of elite experienced people demanding the respect that we once held,
educated and trained at the feet of the master. In my view the capital market requires
such an objectivity based profession wdth new skills if the market is to be enhanced
and not destroyed by the urge for greed and power at the expense of others in
society.
The renewal and re-focus of our professional bodies. Ladies and Gentlemen, is not
only relevant, but crucial if we are to meet not only the desires of our forefathers but
also the desires of the society of the fiiture which I am sure we all wish to belong to.
Members of the profession require wide inter-personal skills if they are to meet the
needs of society for judgement and objective assessment services in the areas of
accounting, auditing, govemance, insolvency and management.
Perhaps in 100 years time, my successor will be speaking to the intemational
convention of the 'Physicians of Accounting' in each country and we will not be
ashamed that at the same time there may be another larger intemational conference of
trade associations of the purveyors of financially orientated customer services. Both
Page 14
are needed if the needs of the capital markets are to be met and confidence in such
markets enhanced.
Professor J P Percy, CA
Edinburgh
May 1995
The views expressed in the above paper are those personal to the writer and should
not be taken to be the views of his firm or any company of which he is a director or
his own Institute of Chartered Accountants of Scotland.
Page 15
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
'Auditsystem/2
A new generation of audit technology'
KG J. van Leeuwen
AuditSystem/2 (AS/2) is the most powerful and effective audit teamware
system ever. It is a leading-edge software system that builds on our
experience with earlier ground-breaking products that have established
Deloitte Touche Tohmatsu International as the leader in audit technology.
And it introduces a vast array of new capabilities that substantially increase
both the depth and the breadth of that technology.
The key to AS/2's capabilities is that it is built largely from "best of breed",
industry standard Windows products and Microsoft's new, leading-edge
integrating technology. Thus AS/2 provides all the tried-and-tested
functionality of earlier products plus the additional capabilities of Windows
and the building block products. AS/2 includes outstanding on-line review
capabilities, convenient "at-your-fingertips" access to information, electronic
mail and functions that greatly facilitate creative communications with clients
~ features that are especially important to senior audit management. AS/2
can be used effectively on audit engagements of all sizes - form the largest
multinational corporations to small local businesses.
AS/2 includes modules as Document Manager, workpapers, Trial Balance,
Multilocation Support, On-line Access to Information, File Interrogation and
Smart Audit Support.
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
An overview of the system will be presented fo'cusing on the Smart Audit
Support module. This module using an expert system provides the auditor
support for risk assessment, audit strategy selection, controls evaluation and
detailed audit program or industries. The demo of the system will also cover
a topic from the ahold visit. As part of the presentation people's reactions
to working with this knowledge-based tool will be discussed.
From Team Bullitin
Our Technological Advantage
Flexing time. Stretching space. Paradigm changes in what philosophers used
to refer to as "Absolutes." How could such massive changes occur in one
generation - from an historical perspective, in the blink of an eye? The
one-work answer? Technology. Innovations in computers and software have
redefined the world of work, instantaneously linking job sites around the
world and transforming a 2 a.m. bout of insomnia into a computerized
opportunity to tie up loose ends at the office.
A commitment to Technology
Nearly 10 years ago, our firm made a commitment to develop technology for
workpaper preparion, organization, and review. The result was A+, a
custom-designed audit software system introduced in 1989. We thus became
the first major accounting firm with such a system and a leader in audit
software development. In factin April 1994, Emersons's Professional
Services Review recognized our innovations in a four-page article entitled,
"Deloitte & Touche: Harnessing Audit Technology." "Until recently, our
advances in audit technology were among the best-kept secrets in the
accounting field," notes Mike Sutton, national director, accounting and
auditing professional practice. "But now, clients, non-clients, and com-
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
petitors alike are recognizing and admitting how far ahead we a in a
technological niche that gives us many competitive advantages." The number
of offices using the software has increased steadily since its introduction.
According to Trevor Stewart, national director of accounting and auditing
technology, "our U.S. offices have 85 to 90 percent of their engagements on
A+." A+ was developed for the DOS operating system, but the huge
popularity of Microsoft Windows has opened up many new opportunities for
audit software, prompting the firm to build on Windows' existing capabilities.
Led by Trevor, project teams for Princeton, Amsterdam, and London
collaborated to retool our audit technology platform for the Windows
environment. The result is a new generation of audit software called
AuditSystem/2 (AS/2), which a number of member firms, including Canada,
France, the Netherlands, the UK, and the United States, will pilot this
September.
Outstanding Features
AS/2 enhances A+'s audit capabilities by using the power of Microsoft
products such as Word for Windows, Excel, and Access, as well as other
products such as Folio VIEWS and cc:Mail. In addition to on-line review
capabilities, AS/2 includes convenient "at-your-fingertips" access to infor­mation
and features that greatly facilitate creative communications with
clients.
Specifically, AS/2 provides:
* "Document manager" for organizing and accessing electronic audit files
and for facilitating the flow of work between members of an audit team
* "Smart audit support" for audit planning and program development
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
* Workpapers that integrate word processing," spreadsheet, and graphics
* Trial balance capabilities that include consolidations, foreign currency
translations, leadsheets, and client-ready financial statements
* Database and communication capabilities to help manage multinational
and other multilocation audit engagements
* Instant on-line access to information, including Deloitte Touche
Tohmatsu International and member firm literature and comprehensive
audit planning guidance
* File interrogation for extracting and analyzing data in clients' computer
files (trial balances or sample selection, for example)
With this system, audit team members using modems can send documents
electronically from anywhere in the world - on the road, in the air, at home,
or with a client. They can create useful cross-references at any stage of the
audit and develop documents from multiple locations. The firm's capabilities
in this area have benefited our recruiting efforts. "Candidates are interested
in working for a progressive firm, and we demonstrate that ideal with this
technology," says Mark Chain, national director of recruiting and university
relations. "Students learn how to use these kinds of systems in school, and
they want to continue using them in their careers."
Roll-Out Plans
AS/2 will be used on a number of pilot engagements in 1994 and will be
rolled out aggressively starting in 1995. Individual offices have appointed
accounting and auditing technology directors to oversee the transition from
A+ to AS/2. A+ has been well received by the internal audit community,
and Trevor expects AS/2 to be even more popular.
FEE/IFAC 1995 International Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
On the Horizon
"The distinguishing features of our audit technologies are an unparalleled
degree of integration and a focus on supporting audit teams rather than just
individual auditors, "Trevor explains, "As a firm, our goal is to provide
technology that enables us to operate as a seamless global network of
professionals." "We have developed the most effective, integrated, and
productive Windows-based audit teamware ever, "Mike Sutton concludes.
"Now our business imperative mandates that we implement is this technology
fully throughout the firm and realize the benefits of our investment. Our
future success depends on it."
How AS/2 Works
AuditSystem/2 consiits of • numlwr of audit-sp«cif ic cora modulas constmctad
using industry-standard and propristary building bloclcs. It runs on tha Microsoft
Windows platfonn. OLE (Objoct Unking and Embadding), a kay Microsoft tach-noiogy,
is tha 'glus' that AS/2 usaa to accomplish saamlass intagration.
TABLE OF CONTENTS
FEE/IFAC 1995 Intemational Aooountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TABLE OF CONTENTS
RED TABS YELLOW TABS
GENERAL INFORMATION
OPENING CEREMONY
TABLE OF CONTENTS
CONFERENCE PROGRAMME
WELCOME FROM NIVRA
SPEAKERS AND DEBATERS
MORNING PROGRAMME INDEPENDENCE
CORPORATE GOVERNANCE/
RESPONSIBILITIES
ENVIRONMENT
ASSURANCE SERVICES
MANAGING EXPECTATIONS
INFORMATION TECHNOLOGY
FEE/IFAC 1995 International Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TABLE OF CONTENTS
(CONTINUED)
RED TABS YELLOW TABS
AFTERNOON PROGRAMME FINANCIAL INFORMATION
SOCIAL SECURITY SYSTEM/
WORKING ENVIRONMENT
EDUCATION
INTERNAL - EXTERNAL
AUDITOR/HIGH TECH AUDIT
SMALL AND MEDIUM-SIZED
ENTERPRISES
PUBLIC SECTOR
FEE/IFAC 1995 Intemational Accountant^ Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE DAY'S PROGRAMME AT A GLANCE
MORNING
PLENARY SESSION
09.00 - 09.15
Wim Moleveld
Director General, NIVRA
Opening Performance
09.15 - 09.20
Arnold Schilder
President, NIVRA
Official welcome from your host
09.20 - 09.40
Jens R^der
President, FEE
"People for People"
09.40 - 10.00
Juan Herrera
Deputy President, IFAC
"The Accountancy Profession and Care"
10.00 - 10.20
Arnold Schilder
President, NIVRA
Closing Performance
PARALLEL SESSIONS
10.30 - 12.30 Parallel Sessions 1 to 6
12.30 - 13.45 Lunch
FEE/IFAC 1995 Intemational Aooountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE DAY'S PROGRAMME AT A GLANCE
(CONTINUED)
AFTERNOON
PARALLEL SESSIONS
13.45 - 17.00 Afternoon Programmes A to F
"Meet the Society"
EVENING
19.30 - 21.00 Closing Reception offered by the Mayor
of Amsterdam - Rijksmuseum
21.00 - 23.00 Candlelight Diimer Cruise,
Amsterdam
23.00 Conference Ends
FEE/IFAC 1995 International Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TRANSLATION FACILITIES
The official language for the conference is English. During the mor­ning
parallel sessions, simultaneous translation from English into
French, and where applicable, from French into English, will be
provided in the sessions on Independence and Corporate Governance/
Responsibilities. In the case of the afternoon sessions, due to the lack
of facilities at the various locations concerned, we regret that it has not
been possible for us to provide a translation service.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
TRANSPORT ARRANGEMENTS
For Friday 12 May, a special fleet of NIVRA shuttle buses will be
available to transport participants (free of charge) to and from the
various locations during the course of the afternoon and evening. Car
parking facilities have been reserved at the RAI Congress Centre for
the whole day until 1.00 hrs (1 am Saturday morning).
For the afternoon sessions, the shuttle buses will transport participants
from the Congress Centre to the respective locations in and around
Amsterdam. The shuttle buses will be marked with the name of the
session as their destination so participants should ensure that they
travel on the right bus.
The shuttle buses will return participants to their hotel or to the
Congress Centre, arriving back at approximately 17.30 hrs. These
buses will call at each of the conference hotels on their way back to
the Congress Centre, so allowing participants to return to their hotels
for a short rest prior to the evening programme, should they so wish.
Alternatively, participants not wishing to return to their own hotel or
to the Congress Centre, will be able to enjoy light refreshments at the
Okura hotel before leaving for the party in the evening.
For the evening programme, the shuttle buses will transport parti­cipants
from the RAI Congress Centre, their hotel or the Okura hotel,
depending on where they rested after the afternoon sessions, to the
Rijksmuseum for the evening reception. The shuttle buses will return
participants to their hotels or the RAI Congress Centre at the end of
the evening.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
ACCOMPANYING PERSONS'
PROGRAMME
With its six million flower bulbs in a setting of ancient trees, splendid
ponds, flowering shrubs and large variety of perennials, Keukenhof is
rightly called the "Spring Garden of Europe". The overwhelming
beauty of Keukenhof in bloom must be experienced to be believed.
Moreover Keukenhof has three pavilions so that in the months of April
and May successive shows can be seen.
Those joining this programme will be treated to the opening of the lily-show,
according to some the most beautiful of all the flower shows. As
an extra attraction, this excursion takes you first along a scenic route
through the Dutch coastal areas behind the dunes. Then on to the "sea
of flowers" near Lisse. You will be given ample opportunity to stroll at
leisure through this huge flowerpark and will enjoy a delicious lunch
overlooking the lily-show.
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE EVENING PROGRAMME
From 19.00 to 20.00 hours the Mayor of Amsterdam will offer the
participants and their partners a closing reception in the Rijksmuseum
under the watching eyes of Rembrandt's Nightwatch.
The Mayor will be represented by the Alderman of the Amsterdam
Council, Mr. de Grave, who is responsible for financial affairs in the
Council. There will be no speeches during the reception owing to the
poor acoustics but participants will be able to make a guided tour of
the building.
This reception will be followed by a candlelight dinner cruise mean­dering
along the canals of Amsterdam.
WELCOME FROM NIVRA
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
WELCOME MESSAGE FROM NIVRA
To the participants of the FEE/IFAC Conference
Amsterdam, 12 May 1995
Dear friends and colleagues,
It is our great pleasure as hosts of the FEE/IFAC conference to
welcome you. Participants from as many as 40 countries have regis­tered
for this congress. We are pleased and rather proud that col­leagues
from so many countries are willing to come to our country.
For some of you this is an opportunity to renew old acquaintances but
for many it represents your first visit to our country. We hope this
visit will be a pleasurable experience and that we will succeed in
making you feel at home with us.
As a country which has built its prosperity and reputation on inter­national
trade over very many years, the Netherlands have always
placed great emphasis on doing business in foreign countries; for this
reason, international relations have always been held in high regard by
the Dutch people. The smaller you are, the bigger the rest of the
world! This strong international orientation is also adopted by the
Dutch accountancy profession.
Dutch accountants have maintained a strong international perspective
from the very beginning. We therefore feel privileged that FEE and
IFAC have decided to hold this conference in our country in the week
of the celebration of the centenary of NIVRA, and that the Council of
IFAC and the Board of lASC, as well as the Public Sector Committee
of IFAC, chose to meet this week in Amsterdam.
FEE/IFAC 1995 International Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
The theme "People for People" has been chosen for the jubilee cele­bration
as well as for the FEE/IFAC conference. This theme expresses
the essence of the accountancy profession: a profession which is
practised by people for people and by people working with each other.
It is from this perspective that present day issues facing the accountan­cy
profession will be discussed. In close collaboration with FEE and
IFAC and their respective committee chairpersons, we have put
together a programme which addresses some of the most important
subjects on the agendas of FEE and IFAC. This programme therefore
offers participants an opportunity not only to be informed about these
important issues but also to make a direct contribution to them and to
the FEE and IFAC policy-making process.
On behalf of NIVRA, we would like to wish you a productive con­ference
and an enjoyable stay in the Netherlands.
Arnold Schilder
President NIVRA
Wim Moleveld
Director General NIVRA
Ai ^ ^^ kd^^-^'"-
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
THE CONFERENCE THEME:
PEOPLE FOR PEOPLE
The theme for this International Accountancy Conference, which
coincides with the NIVRA 100 celebrations, is "People for People". In
the various technical and social events which are offered to partici­pants,
we have sought to place emphasis on the people aspect of
accountancy, both in terms of a profession that cares for society and
one which works together with other professions and disciplines for the
benefit of the business client and society in general. In essence,
"People for People" is intended to highlight the important interrelati­onships
that exist between: the service expectations of the people we
serve; the process by which we communicate in attempting to meet
those expectations; and, the inherent and related technical issues
involved.
We all recognise that information has become a key commodity in the
world today. It is the commodity to which the accountancy profession
adds value. Our profession's standing in the community depends to a
very large extent upon the reliability and integrity of the information
on which the accountant provides an independent expert's opinion,
notwithstanding the fact that the preparer of the information has first
and foremost responsibilities. Therefore, independence is the bedrock
on which the profession's ability to lend credibility to information rests.
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
As the demands for information increase, both in terms of the speed at
which it is made available and in terms of the volume and complexity
of information, is there a possibility that we may become too concerned
with the mere act of communication at the expense of caring for the
way in which that information is perceived and understood?
Most of those attending the conference will be aware of the increasing
variety and complexity of professional and business life. We find
ourselves having to cope with a growing body of rules, regulations,
standards and procedures which have added to and complicated the
pace and pressure of our working day. How, we might ask ourselves, is
this drift towards a more regulated and technical profession, in areas
such as responsibilities, affecting the human aspects of serving client
expectations and of communication? The means by which the different
groups in society communicate with each other has changed, and will
continue to change, dramatically as a result of improvements in infor­mation
technology. But is there a danger that we may overlook the
behavioural aspects?
If the profession is to meet the needs and expectations of those it
exists to serve, it must understand and recognise the behavioural
aspects of communication, including such matters as empathy, percepti­ons,
beliefs and interpretations.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
Technology is an aid to the process of communication but are we
inclined to place too much emphasis on the machine rather than on the
message and on how that message is perceived and used? Does
greater consideration need to be given to the fact that it is people that
take decisions not machines and that it is people that interpret and act
on the information?
The communication of information does not end with the mere act of
supply. There is the wider social responsibility that goes with the act
of communication which involves more than simply ensuring that all the
rules, regulations, procedures have been properly and meticulously
performed and complied with. Arguably, it extends beyond this to the
wider social role of ensuring that information is properly understood
and that wrong decisions are not made simply because the message was
misunderstood.
These sort of questions need to be addressed. We hope that the con­ference
will provide an opportunity to do so. As accountants continue
to diversify into new areas of work which involve an increasing reliance
on the work of other disciplines and professions, we will become more
aware of the different values and perspectives which exist in society,
hopefully engendering a greater appreciation of the need to understand
more about the people we work with and the people we serve.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
ACKNOWLEDGEMENTS
Acknowledgements to
ABN AMRO Bank NV
Akzo Nobel
for their financial support
And to
Kamer van Koophandel Amsterdam
Koninklijke Ahold NV
Social Verzekeringsbank
Universiteit Nijenrode
Vereniging voor de Effectenhandel
Deloitte & Touche Accountants
KPMG Accountants
VB Accountants
for their support in organising the visits in the setting of 'Meet the Society'
on Friday afternoon 12 May 1995.
FEE/IFAC 1995 Intemational Accountancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
NIVRA-100 ORGANISING COMMITTEE
Prof. Andre Bindenga (Chairman)
Lex Bolwerk
Wim de Bruijn
Sybren Kalkman
Wim Moleveld
Prof. Arnold Schilder
Henk Volten
Frans Quax (Secretary)
FEE/IFAC 1995 Intemational Accnantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
CONFERENCE PROGRAMME GROUP
NIVRA-100 Project Management Group:
Wim Moleveld
Chris Hibbitt
Kinga Kolczonay
Dorien Michels
Frans Quax
Marieke Viergever
Virginia Wright
NIVRA Publicity:
Mariëtte Nelissen
Eurocongres:
Mariëtte Helmann
SPEAKERS AND DEBATERS
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
SPEAKERS AND DEBATERS
ROGER ADAMS (UK)
Debater, Environment
Roger Adams is Technical and Research Director
for the Chartered Association of Certified Accoun­tants
(ACCA) - one of the six main UK accounting
bodies. A Chartered Accountant, Mr. Adams is an
experienced lecturer and author of a popular UK
auditing textbook. He is also a member of the
FEE Environmental Task force.
As Head of Research at ACCA he was responsible
for commissioning the first major research study
analyzing the role of the accounting profession in respect of environ­mental
issues. This report. The Greening of Accountancy by Professor
Rob Gray was published in 1990 and has achieved world-wide recog­nition.
In 1991 Mr. Adams initiated the ACCA Environmental Repor­ting
Award Scheme, a scheme which has become the model for similar
schemes in Denmark and Canada. The awards for 1994 were presen­ted
in London on Tuesday 28 February 1995 and for the first time,
included awards to non-UK companies.
ANTON CARL ALBERTS (Netherlands)
Speaker, Social Security [Working Environment
Anton Carl Alberts (Ton Alberts) was born in 1927
in Berghem, Belgium. He studied architecture at
the School of Fine Arts in Paris and at the Aca­demy
of Architecture in Amsterdam, where he then
taught for over twenty years. In searching for a
cure to a serious illness he had as a young man,
Mr. Alberts was introduced to Hatha Yoga and
then to esoteric philosophies, which have become a
life-long study. Through many years of architec­tural
experience, searching to express esoteric prin­ciples
in his work, he developed his interpretation of "Organ Architec­ture".
This is a process which attempts to bring matter-through form,
material and colour - into closer harmony with mankind. His office,
now Architectenbureau Alberts & Van Huut, has worked along these
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
principles since 1964. Some of the best examples of this are the ING
Bank (formerly NMB Bank) in Amsterdam Zuidoost, KPMG building in
Amstelveen and the Gasunie in Groningen.
PROFESSOR AAD D. BAC (Netherlands)
Host, Public Sector
Professor Aad Bac is a partner in VB Accountants
and Professor of Government Accountancy at Til-burg
University. He is a member of the NIVRA
Steering Group for Government and Not-for-Profit
Organisations of Voortgezette Educatie Register
Accountants (VERA), the NIVRA body responsible
for continuing professional education of Dutch
Accountants. Previously, he held the posts of assis­tant
professor and associate professor for Admini­strative
and Accounting Organisation and Informa­tion
Technology at Erasmus University, Rotterdam. Professor Bac has
over 30 years of experience in the accountancy profession, particularly
in government accountancy, a field in which his firm has specialised for
80 years. He is author of several books and articles on government
accountancy and government financial management.
KENNETH A. BIGGS (Canada)
Key speaker. Managing Expectations
Kenneth Biggs is chairman of the Financial and
Management Accounting Committee of IFAC. He
was an active member of the Society of Manage­ment
Accountants of Canada over many years,
holding the office of President in the period 1973
to 1974. Retiring from business in 1993, Mr. Biggs
remains involved in activities related to the accoun­ting
profession and also serves as a Director of
EdTel, a telecommunications company. Prior to his
retirement, Mr. Biggs held a number of positions in
varied businesses including President of Unicare Integrated Software
Inc. (healthcare software business) and President of QCTV (an Alberta
-based cable TV company). He has also served as Snr Vice-President
and Director of Canadian Utilities Limited.
FEE/IFAC 1995 Intemational Accoantancy Conference
PEOPLE FOR PEOPLE
May 12, 1995 Amsterdam
RANDY C. BILLING (Canada)
Key speaker, Environment
Randy Billing is President of Ernst & Young Envi­ronmental
Services Inc. He is a member of the
International Organization for Standardization
(ISO) 207 Committee 'Environmental Management'
and of both the Environmental Auditing (EA) and
Environmental Management System (EMS) sub­committees
of ISO 207. He is also Chairman of
the Canadian Standards Association (CSA) Com­mittee
on environmental auditing, which published
its first standard on general principles and practices
in January 199